Explain the Extent of Avoidance of a Contract by a Minor

Lisa Rene

Professor Mather

Business Law

 February 8, 20172017

Learning Outcomes

LO.2 (Chapter 13)-Explain the extent of avoidance of a contract by a minor.

A minor is an individual who is under 18 years of age. Minors do not have the ability to formulate a contract, for this reason, minors can only avoid or accept a contract. According to Twomey et al, “a contract made by a minor is voidable at the election of the minor” (244). When a minor avoids a contract, there are certain rules regarding the effects if the property received by the minor under the contract. A minor can only avoid a contract during his/her majority statutes, and only for a given amount of time. After the given time, then the contract is deemed to be ratified and can’t be avoided. (244). When a minor disclaims a contract, minors must pay for the necessities. If the minor has the property, the minor has to return it or make provisions to do so. In some cases, the property is damaged or destroyed, in this scenario, the minor, “can still disaffirm the contract and is required to return only what is remain” (245). Also, if the contract is dissolved, then the other party must return the money and property received from the minor. When a minor rejects a contracts for necessities, the minor has to reimburse the value of the necessities. According to Twomey et al,” necessities are things indispensable or absolutely necessary for the substance of human life” (245). These include: education, health and comfort. If a person provides the parent/ or guardian the required necessity, then the minor is not responsible because the contract is between the parent and the individual.  An individual who is no longer a minor cannot reject a contract after reaching the minority. Twomey et al, stated, that ramification consist of any word or conduct of the former minor manifesting an intent to be bound by the terms of a contract made as a minor (246). Ratification can take the form of written in some states. Contracts that minors cannot avoid include: educational loans, medical care, legal duties, bank accounts, insurance and stocks. If a minor agrees to a contract, the parent is not liable, in case of the cosigner, if the minor is unable to adhere to the contract, then the cosigner is bound by the contract. Current Event: Must parents have written contracts with children? A written performance contract between students and parents is not only a bad idea but also dangerous and should not be promoted at all by the Ministry of Education. However, parents should continue to have discussions with their children and encourage them to be serious about their studies. I believe most serious parents do this anyway. Promoting the signing of performance contracts between parents in a country where a large number of our population is semi-literate can be catastrophic if there is no guidance from higher authority on what will happen if a student does not meet the performance.