Key Takeaways

  • Minors typically lack legal capacity to enter enforceable contracts, but emancipated minors are treated differently.
  • Emancipation grants certain adult rights, including the ability to sign legally binding contracts.
  • Emancipated minors may be held to the same legal standards as adults in contract disputes.
  • State laws vary on how emancipation is granted and what rights it includes.
  • Some contracts may still require scrutiny even if an emancipated minor is involved, depending on the nature of the agreement.

Can a minor enter into a legal contract? Yes, minors can enter into a legal contract, although the contract will not be enforceable in most cases.

Minors and Legal Capacity

In most states, minors are individuals who are under the age of 18. Minors are not considered to have legal capacity, meaning they do not have the ability to make contracts with other people. If a minor signs a contract, they have the ability to void the deal with certain exceptions. For instance, a minor cannot void a contract for an item that is considered a necessity:

  1. Food
  2. Clothing
  3. Lodging

Minors only have the ability to void a contract due to their lack of capacity while they are under the age of 18. If a contract is not voided before the minor reaches the age of the majority, most states will consider the contract legally valid.

Mental Incapacity

If a person who qualifies as mentally incapable enters a contract, they have the right to void the contract. They can also have a guardian void the agreement. As with minors, mentally incapacitated persons cannot void contracts for necessities. The majority of states use something called the cognitive test to determine if someone is mentally capable. This test helps determine whether the person in question has the ability to understand the words in a contract and their effect.

Other states use the affective test to determine if someone is mentally capable enough to enter into a contract. With this test, a contract is voidable if one party is incapable of acting reasonably and the other party knows of this limitation. Certain jurisdictions use the motivational test to determine legal capacity. This test determines a person's capacity by measuring if they understand whether they should or should not enter into a contract. Unfortunately, these tests are not always effective and can produce differing results when used on a person with a mental impairment such as bipolar disorder.

Intoxication and Contracts

In most cases, intoxication due to drug or alcohol use does not remove a person's legal capacity to enter into a contract. If you have become voluntarily intoxicated and have entered into a contract, most courts will not give you the right to void your contract, believing that you should take responsibility for your actions. The exception to this rule is if your intoxication was so severe that you were unable to understand the implications of entering the contract, and a sober party took advantage of you.

Can Minors Enter into a Contract?

A minor does have the ability to enter into a legal contract. The problem, however, is that the courts will not enforce most contracts involving a minor. Whether a contract with a minor is enforceable or not depends on a variety of factors. Generally, if a minor makes a contract, the minor has the ability to void the contract until they reach the age of majority. Protecting minors from the consequences of entering into an agreement they do not understand is the purpose of this rule.

Because minors do not have legal capacity, courts allow minors to exit a contract whenever they wish. The other party does not have the right to void the contract, only the minor party. While a contract with a minor is valid, the minor can leave the contract at any time. Obviously, it is very easy to abuse this rule, which is why there are certain exceptions to a minor's ability to void contracts.

If you plan to buy something from or sell something to a minor, you should be aware of the risks of entering into a contract with this person. Courts mostly will not uphold a contract between an adult and a minor. If the contract with a minor involves a nonessential item, the contract has no validity. Also, if the minor entered into a contract for a nonessential item without their parent's permission, the parent can have the contract voided. A parent or guardian must consent to a contract with a minor for the contract to be valid. Contracts made with emancipated children are valid because the court granted adult status to the emancipated minor.

State Variations in Emancipation and Contract Rights

Because emancipation is governed by state law, the rights and legal capacities of emancipated minors can vary significantly. Some states have streamlined legal procedures for emancipation, while others may only grant it in rare cases. Key differences may include:

  • Whether partial emancipation is recognized: Some jurisdictions allow for limited legal rights while others grant full adult status.
  • What contracts are allowed post-emancipation: States may differ in what types of contracts are automatically considered valid for emancipated minors.
  • Parental obligations after emancipation: In some states, parents may still retain partial financial responsibilities even after emancipation.

For example, in Illinois, the court may grant either full or partial emancipation, and only fully emancipated minors are released from all parental oversight. In contrast, other states may not distinguish between degrees of emancipation.

Because of these variations, it is advisable to consult a qualified attorney familiar with your state's laws. You can find experienced legal professionals through UpCounsel to assist with emancipation or contract matters involving minors.

Limitations and Considerations in Contracts with Emancipated Minors

While an emancipated minor can enter into a contract, not all agreements are treated equally. Courts may still scrutinize contracts to ensure they are not exploitative or fundamentally unfair. Common areas of concern include:

  • High-risk or complex financial agreements: Courts may question contracts involving significant debt, such as large loans or credit agreements.
  • Employment contracts: Although generally valid, contracts that impose unusual demands or restrictions may be challenged if they are deemed abusive or coercive.
  • Business arrangements: Emancipated minors running businesses may need to comply with licensing and regulatory requirements that vary by jurisdiction.

Additionally, emancipation does not shield a minor from being taken advantage of due to their limited life experience. Courts may still consider the fairness and reasonableness of a contract even if both parties are legally competent.Requirements for Emancipation

Emancipation laws differ by state, but certain core elements are usually required for a court to grant emancipation:

  • Age Requirement: Most states require the minor to be at least 16 years old.
  • Financial Independence: The minor must be able to prove financial self-sufficiency without relying on parental support.
  • Maturity and Responsibility: The court evaluates whether the minor demonstrates enough maturity to handle adult responsibilities.
  • Living Arrangement: The minor must often show that they have a stable living situation, often separate from their parents.

In some states, marriage or military enlistment may also automatically confer emancipated status. Once emancipated, the minor is expected to take legal responsibility for their actions, including contracts they sign.

Legal Capacity of Emancipated Minors

Emancipation is a legal process that grants a minor the legal rights and responsibilities of an adult before reaching the age of majority. Once a minor is emancipated by court order, they are typically considered legally competent to engage in a range of adult activities—this includes the ability to enter into legally binding contracts.

An emancipated minor can enter into a contract without needing parental consent. These contracts are enforceable in the same way as those entered into by adults, which means:

  • The minor is legally bound to the terms of the contract.
  • They cannot void the contract solely due to age.
  • They may sue and be sued in their own name regarding the contract.

This change in legal status is one of the core benefits of emancipation. It allows minors who are living independently—such as those working full-time or managing their own living arrangements—to sign rental agreements, employment contracts, and even business agreements.

However, emancipation does not grant all adult rights. Emancipated minors may still face limitations, such as being unable to vote, purchase alcohol, or engage in other activities legally restricted to adults over a certain age.

Frequently Asked Questions

1: Can an emancipated minor be sued for breach of contract? Yes. Once emancipated, a minor is legally treated as an adult for contractual purposes and may be sued or held liable for breach of contract.

2: What types of contracts can an emancipated minor enter into? They can typically enter into leases, employment agreements, service contracts, and even business partnerships, depending on state law.

3: Does emancipation give a minor all adult rights? No. Emancipation confers many, but not all, adult rights. For example, emancipated minors still cannot vote, drink alcohol, or get married without court approval in many states.

4: How does a minor get emancipated? A minor must petition the court and prove they are financially independent, responsible, and have a stable living situation. Some states also allow emancipation through marriage or military service.

5: Can a contract be voided if the minor was emancipated under false pretenses? Potentially, yes. If a minor misrepresents their status and it materially affects the contract, the agreement may be challenged in court. However, emancipation is typically a formal legal process documented by a court order.

If you need help determining can a minor enter into a legal contract, you can post your legal needs on UpCounsel's marketplace. UpCounsel accepts only the top 5 percent of lawyers to its site. Lawyers on UpCounsel come from law schools such as Harvard Law and Yale Law and average 14 years of legal experience, including work with or on behalf of companies like Google, Menlo Ventures, and Airbnb.