Contracts with Minors and Others Lacking Legal Capacity

"In California, the elements for a viable contract are 1) parties capable of contracting; 2) their consent; 3) a lawful object; and 4) sufficient cause or consideration." In regards to a minor 's capacity to contract, a minor is capable of contracting unless specifically prohibited. However, Section 6710 of the California Family Code states that "except as otherwise provided by statute, a contract of a minor may be disaffirmed by the minor before majority or within a reasonable time afterwards."

A contract is an official agreement between two parties. There are different types of contract, such as sale and purchase of a business agreement, partnership agreements, lease of business premises, lease of plant and equipment and employment agreements. The format can vary too. It can be face to face, written, or distance selling. The specifications of a contract involve offer and acceptance, the intention to create legal relations, lawful considerations, capacity and legal formalities such as terms and conditions.

* Minors are defined as individuals under the age of majority to contract. This is the age at which a person is entitled to the management of his/her own estate (18 in most states).

Contractual capacity is, “The legal capability to form a binding contract. A number of classes of people lack contractual capacity, and these include minors…” (BusinessDictionary.com, 2010). A minor’s capacity to contract and the lack of an employee’s capacity to bind a company by contract could be used in defense against a breach of contract.’ Consideration is necessary for any contract to exist. A promissory estoppel is used when consideration requirements are absent (Kubasek, Brennan, & Browne, 2015, p.250).

For a company to transact with third parties and to enter into valid business dealings there must be a valid contract concluded in order to create legally binding obligations enforceable between the company and the third party. For a contract to be valid the company must have the requisite legal capacity to enter into the contract and the directors or officers representing the company must have the authority to act on its behalf. Within company law, capacity and authority are interrelated principles however it is important to note that each is an entirely different and separate legal concept from the other. Capacity relates to the legal competency and the powers of the company while authority relates to the power of a company's director or officer to act on behalf of the

A contract is an agreement between two or more parties which in Scotland does not need to take a specific form, as a spoken agreement is still equally as enforceable as a written contract in certain circumstances such as in most social and domestic arrangements. A contract creates a legally binding bond between the parties involved. Contracts are made everyday sometimes without even realising it from buying a coffee to buying a house.

A contract is an agreement between and offeror, and an offeree, that can be enforceable by a court of law or equity (Cheeseman, 2010). A contract consists of the following elements; agreement, consideration, contractual capacity, and lawful object. Understanding each of these elements is of the utmost importance to ensure that each party involved has a good understanding of what is expected from one another.

Minors, who become emancipated, that is, no longer under the control of their parents, are responsible for their contracts.

What policies and procedures are in place within your setting to protect young people and adults who work with them?

In general, a Minor’s contract is voidable except for contracts related to necessary items. However, there are some specific circumstances that the contract made by a minor is not void, such as the contract of ‘necessary’ or the contract that enables a person to earn a living.

During my research of contract law I discovered a publication that highlighted all the legal aspects of binding legal contracts. There are several reasons that I judge may rule a contract unenforceable, one of which relates to nondisclosure due to lack of capacity, this immediately required more study. According to the publication “It's expected that both (or all) parties to a contract have the ability to understand exactly what it is they are agreeing to. If it appears that one side did not have this reasoning capacity, the contract may be held unenforceable against that person. The issue of capacity to contract usually comes up when one side of the agreement is too young or does not have the mental wherewithal to completely understand the agreement and its implications” (Stim 2000). I knew that Mrs. Doe would try to use her son’s age as a reason not to honor the contract. I personally believe that if Mrs. Doe actually had

1. Competent parties. A court will not uphold a contract entered into by parties the law does not believe have the capacity to take on such a legal responsibility, such as minors or people who are mentally incapacitated.

Marshall received a signature on a contract from a seventeen year old minor in which he hopes to enforce. From a legal standpoint, minors have a limited ability to enter into contracts. The seventeen year old minor employee can void the contract he signed at any time. Minors have the option to do this because of laws made to protect them

A contract is an agreement made with an intention of legal rights and obligations which the law will enforce. It contains the agreement, consideration and intention. It also have some other things to consider, like capacity of parties, genuine consent or legality of object.

is now a person under 18--may be enforced or voided by the minor, unless the