Legal Competence of Minors
Legal capacity refers to the ability of an individual to enter into a legally binding agreement. When a person possesses the requisite capacity, they are said to be competent to make a binding contract. There are several reasons why a person may be considered unqualified to make a contract. One of those reasons is if they are considered a minor.
A minor in the context of contract law refers to a person who has not reached the age of majority. The legal age of majority is the age at which a person can give consent to be bound to a contract, sue, or be sued. Generally, and in most U.S. jurisdictions, the legal age of majority is 18 years old. That means that for most individuals, they possess the capacity to enter into a legal contract at age 18. If an individual is under 18 years of age, they are considered as lacking the requisite capacity to make a binding contract.
Because of the lack of legal capacity in minors, contracts made by them are voidable. What this means is that even though a minor has entered into an agreement with another party, under the law that agreement cannot be enforced against the minor. In other words, it is unenforceable. Practical application of this rule is that a minor can void the contract any time before they reach the age of majority or within a reasonable time thereafter. To do this, however, the minor must take action to disaffirm the contract . A minor can disaffirm a contract by giving notice within a reasonable period of time of his or her intention to avoid it. This can be done verbally or in writing.
Several states also have enacted a statute that allows a minor to disaffirm a contract for the sale of goods by notifying the seller that he disaffirms the contract and returning the goods to the seller. If the goods are returned in their original condition, the minor is entitled to recover the consideration given for the goods.
It should be noted that some contracts involving minors are not generally voidable. Three notable exceptions include contracts involving the following: These three types of contracts are enforceable against a minor. Thus, if a minor enters into a contract of these types, that contract may be enforced against them upon reaching the age of majority.
Enforcement of a contract against a minor can be affected by a parent or guardian. However, whether this is true will depend on the applicable state law. In some states, a parent or guardian may be held liable on contracts made by a minor that is their child or pupil. Other states, however, have held that parents and guardians are not bound by contracts made by their minor children unless parents or guardians have explicitly affirmed the contract. In such cases, a minor has no authority to bind a parent or guardian on a claim or cause of action.
Exception to the General Rule
Of course, as with most rules, there are exceptions. In addition to being at least 18 years of age, in some states, an individual may be legally emancipated or have reached the "age of consent", have entered into a legal marriage or military service, and therefore will be permitted to sign a legal document. For example, in some states, a minor who has been legally emancipated from their parents (or in cases of extreme abuse, neglected or abandoned) may enter into any contracts as if he or she were an adult. An emancipated minor has the same rights and responsibilities of an adult and has either petitioned the court or accumulated sufficient cash, property, employment and life experience so the court finds emancipation is in the minor’s best interests. In many cases, marriage or military service is sufficient to give a minor legal consent to enter a contract. Military service age varies, but is often from 16 to possibly as young as 15 with parental consent.
Necessaries Contract
Under the common law, a special category of contract exists for "necessaries." Necessaries are defined as goods or services that are considered essential to the minor’s well-being. Generally, the following types of goods or services qualify as necessaries: It is generally accepted that other goods or services may also qualify as necessaries, provided the services are desirable from the minor’s perspective and not merely a convenience to the minor’s parent or guardian. A minor’s liability with respect to necessaries, while established by contract, is limited to the fair price of the goods or services.
Consent and Co-Signing
When a legal document is presented to a minor, the age of majority must be considered, but it’s not the only factor. The role of parents or guardians continues long after their child reaches a certain age. When a minor is offered a contract or legal document, whether in connection with work, purchases or schooling, the issue of parental consent or co-signing must be addressed.
Although minors can sign some legal documents, this does not mean that minors are always free to enter into contracts at will. For many contracts, the consent of a parent, guardian or other individual with legal authority may be necessary. Even where a minor is legally authorized to sign a document without consent, such as a medical consent, the individual offering the contract may refuse to allow it. Legally, a medical professional, for example, can choose to delay treatment until a parent is available, or not offer treatment at all. Where a parent or guardian has voluntarily provided consent or co-signs a document, it is generally valid and enforceable.
This parental relationship with respect to a minor can also affect when a minor is permitted to disaffirm contracts. In some cases, if the parent has provided consent to a minor, then the minor is precluded from disaffirming any agreements that otherwise would have been cancelled because of the minor’s age.
What Happens If a Minor Signs Illegally
When a minor signs a contract, the legal consequences of this can be quite severe for the other party. If an adult or other entity enters into an agreement with minor without realizing that there is a violation of the age of majority, the consequences can be "void" rather than "voidable." When this happens, the minor has not taken ownership for his or her end of the agreement. This means that the agreement can be revoked at any time without penalty to the minor. While courts have some discretion in considering these cases, they will often favor the minor and his or her ability to back out of the agreement without facing legal consequences. However, that does not mean that everything signed by a minor is void. Some agreements may be revoked, but others may not. When agreements are not void, but simply voidable, the minor might have to face some legal ramifications for this action . The consideration of the remedy will come down to the specifics of the agreement and the circumstances surrounding it. One option that may be available is the right to receive restitution. In this case, the court can determine the amount of any loss or damage caused to the adult or other entity as the result of the agreement entered into by the minor. The child will have to repay any benefits received, but only to the extent that it is fair and just that he or she return the benefits. If the child has received no benefit from the agreement but he or she was at risk of harm from it should the provisions of the contract be enforced, then the child may not have to make restitution. In situations where the assignment may have been made with the consent of a parent or legal guardian, however, the legal ramifications for the child may be lessened. Ultimately, the legal ramifications for the adult or other entity involved in the agreement with the minor will be a question of the law in each individual state.
Specific State Laws and Variations
Whether the parent is signing for their child or a minor is trying to sign a legal document on their own, as always, it is important to have some insight into the requirements in that particular state to avoid unnecessary, future legal issues. It is important to know that the law varies greatly from state to state as to whether or not a minor can sign a legal document on their own. For instance, minor cannot sign a document because: On the other hand, in Massachusetts, a minor of any age can enter into a contract for certain necessities and be bound to perform such contract, while a minor of at least 14 years can enter into other contracts and be bound to perform if the minor is competent in the eyes of the law. In Pennsylvania, the laws are slightly different. Every person is considered an adult for all purposes including contracts, except the following: (1) any person who has not reached their 18th birthday (minor) (2) persons mentally incompetent due to conditions such as insanity, habitual drunkenness, or narcotics addiction and (3) persons partially or wholly under guardianship. Texas law allows a person under the age of 18 to have a written contract with an adult to have the same effect as a contract with another adult.
Practical Tips for Business and Individuals
For businesses, it’s a good idea to have a blanket policy regarding the age of majority that establishes the rights and obligations of all parties in the business dealings process, from when a minor applies for a credit card to when an adult assists a minor in executing an employment contract.
When dealing with a minor, it is a good practice to have at least one such example in a contract with the minor’s parent or legal guardian. This can provide certainty, and transfer liability, when there is a breach of contract. Although the Uniform Commercial Code (UCC) is largely adopted across the United States, its general rules regarding minors and contracts only apply to the sale of goods . Most other dealings with a minor are governed by state law, and in some states, minors can void any contracts, even those for the sale of goods, that they’ve formed, for example, by disaffirming the contract. Part of the challenge, however, is that these rules governing minors can vary, provided that the UCC has not been adopted by the state in question. For instance, Illinois limits voidability of employment contracts to those where the employment is 30 days or less and where the pay for that employment is at or above the state minimum wage. Even a one-day delay from those parameters would result in a claim being attachable. In other words, the best advice is to consult with a legal professional for specific guidance on when and how to contract with a minor.
