minors

It is a presumption at law that every person is entitled to enter into a contract unless an exception applies. One of those exceptions is for minors. The age of contractual capacity for individuals is the age of 21 at common law, however this was reduced to the age of 18 in 1969 by Act of Parliament. Reaching the age of 18 is known as attaining 'majority'. Minors are those who have not attained the age of 18.

Minors are permitted to enter into contracts for limited purposes, and the test is one that focuses on the nature of the transaction, and whether the minor is of an age such that they capable of understanding it.

The general law states that contracts entered into by children that are for 'necessaries' are binding on children, as are those for apprenticeship, employment, education and service where they are rightly said to be for the benefit of the child. Contracts for necessaries are for the supply of food, medicines, accommodation, clothing, amongst other things but generally excludes conveniences, and products and services for comfort or pleasure. Commercial or 'trading' contracts are excluded. These latter contracts are voidable at the option of the minor, and whether the minor may avoid the contract depends on the nature of the contract.

Contracts where the minor may avoid the affect of the contract are for the acquisition of a legal or equitable interest in property of a permanent nature, such as shares, land, marriage and partnerships. Other contracts require positive ratification in order to be enforceable, which includes contracts for debts and the sale of goods that are not for necessaries. The ratification must take the form of an acknowledgement that the debt is binding after attaining the age of 18. Fresh consideration is not required for the ratification to be complete.

Restraints of trade may be unenforceable against a minor, even if they would be enforceable against an adult.

Usage: The contract of employment with the minor was legally binding.

Related Words: Family Law Reform Act 1969; Minors' Contracts Act 1987; Children Act 1972; voidable; void; Act of Parliament; illegal contracts.