Capacity to contract

Minors and Infants

The terms “minor” and “infant” are used in law to describe a person who is under the legal age of an adult. In nearly all cases, an “adult” is a person who is 18 or older.

Voidable Contract

The general rule regarding contracting with minors or infants is that such a contract is voidable by the minor. This rule has been established to protect younger individuals who may not fully grasp the consequences of certain contracts. Minors are believed to lack the capacity to contract. Therefore, courts and statutes provide minors with the ability to exit the contract at the minor’s discretion. This right does not belong to the other contracting party; it is only at the discretion of the minor. So while the contract is still valid, the minor can basically leave it as he or she sees fit. Due to the fact that such a rule can be abused or otherwise lead to harsh results, a variety of exceptions have been carved out of the general voidability of a minor’s contract.

Necessaries

If every single contract with a minor could be voided, other parties would refuse to enter into a contract with them. The law provides that contracts for certain goods and services are not voidable. Necessaries include items and services that are necessary to the minor’s health and safety, such as food, lodging, shelter and clothing. In some instances, automobiles are considered necessaries. The minor’s and his or her parents economic status can be considered in determining whether an item is considered a necessary. Some courts will enforce the contract as originally written while others may require the minor to pay the fair market value for the goods or services provided. For example, if the minor exited the interstate during a torrential downpour and the hotel was $150 for the night although the fair market value was $100, some courts would impose the $150 price while others would impose the $100 price.