Key Takeaways

  • In contract law, a minor is someone under the age of 21, although most U.S. states now recognize 18 as the age of majority.
  • Minors generally lack the legal capacity to enter into binding contracts, making such agreements voidable at the minor’s discretion.
  • Certain contracts, such as those for necessities or court-approved agreements, may still be enforceable against minors.
  • Upon reaching the age of majority, a minor may ratify or disaffirm the contract within a reasonable time.
  • Minors may be required to pay the fair value—not necessarily the agreed price—of goods or services deemed essential.
  • Emancipated minors may be treated as adults in contract law under specific circumstances.
  • Some states provide additional statutory protections or exceptions to the general rule.

Minors and contract law don't typically mix well. A minor can't legally sign most contracts, so the laws don't usually apply.

Definition of Minor or Infant

In the past, an infant or a minor was a person under age 21. However, most states have revised statutes that identify minors as those under age 18. The words “minor” and “infant” are often used interchangeably in legal situations.

Age of Majority and Jurisdictional Differences

Although the age of majority is 18 in most U.S. states today, the traditional rule in contract law considered a minor to be anyone under 21. This explains why the phrase "in contract law, a minor is someone under the age of 21" still appears in some legal references. However, it’s crucial to verify the applicable age of majority in your jurisdiction, as it can vary for different legal purposes. In rare cases, specific states or countries may set the threshold at 19 or 21 depending on context, such as alcohol purchases, voting rights, or military enlistment.

What Is the Rule When Contracting With an Infant?

When someone chooses to enter into a contract with a minor or an infant, they are doing so at their own risk. Contract laws provide minors the option to exit a contract as they desire, which is called "voiding a contract." These laws exist to protect minors from entering into contracts with responsibilities and obligations that they may not understand.

The rule that allows minors to void contracts can lead to severe consequences, so the laws do have some basic exceptions. One exception allows a minor to either void or accept the contract within a reasonable amount of time upon reaching the age of majority.

Ratification and Disaffirmance by the Minor

Once a minor reaches the age of majority, they have the legal choice to either ratify or disaffirm a previously entered contract. Ratification can be explicit—through a written or verbal affirmation—or implicit, such as continuing to use the benefits of the contract (e.g., making payments or using a purchased item).

Disaffirmance, on the other hand, must occur within a reasonable period after reaching adulthood. Courts generally interpret “reasonable time” based on the nature of the contract and the circumstances involved. If a former minor fails to disaffirm within this period, the contract may be considered ratified by default.

Voidable Contract 

When a contract is valid but contains the option to be voided by any of the involved parties, this is called a "voidable contract." Before entering into a contract, a minor must have the capacity to understand it fully. If an adult enters into a contract with an infant who doesn't have the capacity, the infant retains the right to void that contract.

Other exceptions to the contract laws around minors include contracts that cannot be voided. These include:

  • Military contracts
  • Taxes
  • Necessities
  • Penalties
  • Bank regulations

Many enforceable contracts among minors relate to necessities. If a minor chooses to enter into a contract for something concerning education, comfort, or health, it cannot be voided based on the capacity rule. When voiding a contract, a minor must follow certain rules of the law.

The first rule is returning any items that have been granted under the contract terms. If the minor has any of the items received, they must be returned before the contract can be voided. Failure to return the property limits the ability to void a contract. In general, a contract with an infant or minor can be voided. This rule protects younger people who don't necessarily understand the responsibilities or consequences of entering into contracts. Minors don't have the capacity to enter into contracts.

Statutes and court rulings offer the option to exit contracts to minors, at their own discretion. The other party entering into a contract with a minor does not have the right to void a contract. Only the minor has the discretion to void a contract on this basis. Although the contract is valid, the minor can exit if they wish to do so. Since this rule can lead to severe consequences or be abused, several exceptions exist to the general voidability rule for contracts with minors.

The Role of Emancipation

Emancipated minors—those legally declared independent from parental control—may be treated as adults in some legal contexts, including contract law. Emancipation can occur through marriage, military service, or a court order. An emancipated minor may be deemed to have the capacity to enter into binding contracts, especially for necessities or business purposes. However, emancipation does not automatically remove all restrictions, and legal enforceability may still depend on the contract's subject matter and state laws.

Exceptions to Creating a Binding Contract with a Minor 

The first rule concerns contracts relating to entertainment or sports. If a minor enters into an entertainment or sports contract, this would not be voidable at will. Any contracts for necessities, such as services and goods that are necessary to the safety and health of minors, can't be voided at will. Examples of necessities include shelter or lodging, clothing, and food. In some cases, a motorcycle or automobile could be classified as a necessity. 

Although the rule that allows minors to void contracts at will exists to protect them, the exceptions exist to protect the other parties in contracts. If any minor or infant could simply opt out of a contract as they wish, very few people would want to take the risk of entering into a contract. Certain contracts for specific services and goods cannot be voided at will. The economic status of the minor and their parents could be a factor when determining if a good or service is a necessity.

A court may enforce an original contract, although another course of action could be requiring the minor to pay for the services or goods at fair market value. For example, a minor exits the highway during a major rainstorm and finds a hotel nearby. The price of a room at this hotel for one night was $150, but the fair market value of that same room was $100 for the night. A court could require the minor to pay the full $150 price or adjust the contract to the fair market value of $100. 

Restitution and the Duty to Return Benefits

When a minor disaffirms a contract, they are typically required to return any benefits or property received under the agreement. However, restitution is not always full or fair to the other party, especially if the goods have been used or cannot be returned in original condition. Some states follow a rule of “benefit received,” requiring the minor to compensate the other party for the value retained. Others allow the minor to return only what remains, even if its value has diminished.

This variability depends on jurisdiction and may affect whether adults are willing to contract with minors in business transactions.

Court-Approved and Statutory Exceptions

Some jurisdictions allow minors to enter into contracts that are legally enforceable under specific conditions:

  • Court Approval: Contracts related to the entertainment industry or professional athletics often require judicial approval to be enforceable. Once approved, these contracts generally cannot be voided at will by the minor.
  • State-Specific Statutes: Certain states have enacted statutes that provide additional exceptions. For instance, contracts entered into by minors for student loans, medical care, or insurance may be upheld by courts depending on statutory provisions.
  • Business Contracts: If a minor is legally operating a business, courts may enforce business-related contracts if it’s clear the minor understood the agreement and intended to be bound.

Frequently Asked Questions

  1. In contract law, is a minor someone under the age of 21?
    Traditionally yes, but most U.S. states now define a minor as someone under 18. However, the phrase still appears in legal contexts rooted in older doctrine.
  2. Can a minor be held liable for breaking a contract?
    Generally, no. Contracts with minors are typically voidable by the minor, not the other party. However, there are exceptions, especially for necessities.
  3. What are considered necessities in minor contracts?
    Necessities include food, clothing, shelter, medical care, and sometimes education. Contracts for these cannot usually be voided at will by the minor.
  4. What happens if a minor lies about their age when signing a contract?
    Some states may limit a minor’s ability to disaffirm a contract if they fraudulently misrepresented their age. Courts vary on whether this bars disaffirmance or permits restitution.
  5. Does emancipation allow a minor to sign binding contracts?
    It can. Emancipated minors may be treated as adults for contractual purposes, particularly in matters tied to self-support, employment, or business.

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