When a minor—someone under the age of 18 in most jurisdictions—enters into a contract, they often have the right to void it or disaffirm the agreement, given their legal status as individuals who are not yet considered fully capable of understanding or managing the consequences of their actions. However, not all contracts entered into by minors are voidable. There are certain types of contracts that a minor cannot void, either because the nature of the agreement is inherently in their best interest or because public policy dictates the necessity of upholding the contract.
Contracts for Necessaries
What Are Necessaries?
A “necessary” contract refers to agreements made by minors for goods or services essential to their well-being, such as food, clothing, shelter, and medical care. These contracts are often upheld by courts because they are deemed to be in the best interests of the minor. For example, a minor who purchases groceries or rents a place to live cannot disaffirm the contract, as these are considered essential needs.
Why Can’t They Be Voided?
The rationale behind this rule is rooted in the concept of protecting minors from being taken advantage of while also ensuring they are provided for. If minors were allowed to void contracts for necessities, they could end up in situations where their basic needs were not met. Public policy aims to strike a balance between safeguarding minors and making sure they have access to life-sustaining goods and services.
Examples of Necessary Contracts
Food and Clothing: A minor buying groceries or clothing cannot void these transactions.
Medical Services: A contract for medical treatment cannot be disaffirmed, especially in emergency situations.
Housing: A lease or rental agreement for a minor’s living accommodations is enforceable.
Practical Application
Consider a 17-year-old who signs a lease for an apartment. Even if they decide they no longer want to stay in the apartment, the contract will generally be enforceable. Similarly, if the minor receives medical treatment for an injury, they cannot avoid paying the doctor just because they are underage.
Contracts for Employment
Employment Contracts and Minors
In most jurisdictions, employment contracts are treated differently from other types of contracts. While a minor can generally void a contract to buy non-necessary goods or services, contracts for employment (like part-time jobs or internships) are usually enforceable if they are entered into voluntarily and with a clear understanding of the work involved.
Why Are Employment Contracts Special?
Employment contracts are often considered a way for minors to gain skills, earn money, and prepare for their future. Courts are generally reluctant to let minors void such agreements because it could deprive them of the opportunity to learn and earn. Moreover, employment laws typically provide specific protections for minors, such as limiting the hours they can work or ensuring the work is not hazardous, which further mitigates concerns about exploitation.
Example: A 16-year-old who agrees to work at a local coffee shop is typically bound by the terms of that contract. If the minor is fired unjustly, they can pursue legal remedies, but they cannot simply void the contract on the basis of being a minor.
Exceptions and Limitations
There are exceptions to the enforceability of employment contracts for minors. If the terms of the employment are exploitative or illegal (e.g., the job involves dangerous working conditions or violates child labor laws), then the contract may be voidable by the minor.
Contracts for Educational Services
Educational Contracts
Contracts for educational services, such as enrolling in a school, paying for tutoring, or signing up for courses, are also generally enforceable, even if entered into by a minor. These contracts are seen as benefiting the minor by contributing to their education and development.
Why Can’t They Be Voided?
Courts typically uphold contracts for education because they are viewed as essential to a minor’s growth, similar to contracts for necessities. The opportunity to receive education is considered a right, and voiding such contracts would undermine a minor’s access to learning.
Example: A minor who signs up for a private tutoring service cannot simply disaffirm the contract unless the terms are unreasonable or exploitative.
Contracts Entered into by Emancipated Minors
Emancipation and Its Effect
Emancipation is a legal process that grants a minor some of the rights and responsibilities of adulthood before they reach the age of majority. Emancipated minors can generally enter into contracts that are enforceable just like those of adults. Once emancipated, the minor is no longer able to void contracts simply due to their age.
Why Is This Important?
When a minor becomes emancipated, they are recognized as capable of managing their own affairs, making them responsible for their contractual obligations. Emancipation can occur through court order, marriage, or in some jurisdictions, by simply moving out and becoming financially independent.
Example: An emancipated 17-year-old who enters into a contract to buy a car or rent an apartment is held to the terms of that contract, just as an adult would be.
Contracts for Non-Discretionary Financial Transactions
Credit and Loan Agreements
Certain financial agreements entered into by minors, such as student loans or agreements with a financial institution, may be enforceable. In particular, loans for education or business purposes might not be voidable. This is because these types of agreements are seen as essential investments in the minor’s future and well-being.
Why Are These Contracts Enforceable?
Financial contracts, like loans, can be enforceable for minors if the contract benefits their education or business endeavors. However, the rules vary depending on the type of loan and the jurisdiction. Courts may also examine whether the contract was executed in good faith and whether the minor understood the financial implications of the contract.
Example: A minor who takes out a student loan for tuition may not be able to disaffirm the contract, as the loan is for their education. However, a loan for a non-educational purpose might be subject to more scrutiny and could potentially be voided.
Contracts for Public Policy or Legal Obligations
Contracts Related to Legal Obligations
Contracts that serve a public interest or involve legal obligations may not be voidable by a minor. For example, contracts related to paying taxes or complying with certain legal duties may be enforced even if one of the parties is a minor. This ensures that minors do not circumvent important public duties.
Examples and Rationale
Tax Obligations: A minor who is required to file a tax return or pay taxes is not exempted from this duty by virtue of their age.
Court Orders: Contracts that arise from a court order or legal judgment (such as child support agreements) are typically enforceable.
Conclusion
Minors have special protections under the law, and as a result, many contracts they enter into are voidable to avoid exploitation or undue burden. However, there are several types of contracts that cannot be voided by a minor. These include contracts for necessities, employment, education, and financial obligations in certain contexts, as well as contracts entered into by emancipated minors or those related to public policy.
It is essential to understand that the law is designed to protect minors while ensuring they can engage in certain agreements that are in their best interest. Whether you are a minor or an adult dealing with a minor in a contract, it is crucial to be aware of the types of contracts that are enforceable and those that can be disaffirmed. If you are unsure whether a contract is voidable, seeking legal counsel can help clarify the situation and guide you through the complexities of contract law as it pertains to minors.
Related articles:
4 Classifications of Contracts: A Comprehensive Guide
Void Contracts: What You Need to Know
When Is A Contract Not Legally Binding?