Description of the legal term Minor’s Contract:
In the context of British law, contracts involving individuals under the age of 18, who are classified as minors, occupy a specific and nuanced space. The common law and specific legislation, primarily the Minors’ Contracts Act 1987, provide the framework that determines the enforceability of agreements entered into by minors.
Historically, contracts with minors have been voidable at the option of the minor, which means that while the adult party cannot enforce the contract against the minor, the minor can choose to enforce the contract against the adult. However, there are exceptions to this rule where the law seeks to protect the interests of the minor while also ensuring that adults are not unduly deterred from entering into necessary contracts with them.
The underlying principle is to strike a balance between the protection of young persons from their lack of experience and the encouragement of commercial transactions. As per the law, contracts for ‘necessaries’ and contracts of employment or apprenticeship which are beneficial to the minor are typically enforceable. ‘Necessaries’ are goods or services suitable to the condition in life of the minor and to their actual requirements at the time of sale and delivery. This includes items essential for living such as food, clothing, accommodation, and sometimes education.
The Minors’ Contracts Act 1987 also provides a statutory basis for the power of courts to require restitution in cases where a minor has repudiated a contract and obtained property or a benefit under it. The courts are granted discretion to order the minor to return the property or, if that is not possible, to pay an amount equal to its benefit or the extent to which the minor has been unjustly enriched.
Furthermore, contracts that do not fall within the categories of ‘necessaries’ or beneficial contracts of employment are not automatically void but are unenforceable against the minor unless they affirm the contract upon reaching the age of majority. Moreover, certain contracts, such as those for the purchase of land or shares or partnership agreements, are entirely void if made by minors, as they can lead to ongoing financial obligations.
It is also important to note that some contracts involving minors are deemed so prejudicial to their interests that they may not even be ratified upon reaching adulthood. These include contracts that involve giving a large sum of money or entering into a significant debt.
Legal context in which the term Minor’s Contract may be used:
Consider a scenario where a 17-year-old minor decides to purchase a smartphone on credit. The smartphone is a high-end model and not necessarily a basic necessity for the minor’s lifestyle. In this instance, if the minor chooses to repudiate the credit agreement, the law would likely deem the contract for credit as unenforceable. The supplier could not compel the minor to honour the payments. However, if the court established that the smartphone was a ‘necessary’ under the minor’s current lifestyle and actual requirements, it might enforce the contract.
Another example involves a minor who enters an apprenticeship contract with a firm that provides training, a regular wage, and prospects for future employment. As this contract is likely to be beneficial to the minor, it stands a good chance of being enforceable. If the minor, after some months, decides to leave the apprenticeship, the employer may have the right to enforce certain terms of the contract, such as the provision of notice or the completion of agreed work.
The law relating to contracts entered into by minors is essential in British jurisprudence as it not only protects young individuals from their inexperience but also allows for their engagement in beneficial commercial and employment activities with a level of security for both parties.
