Why are minors not allowed to enter into contracts?
Asked by: Sandrine Ledner | Last update: January 26, 2026Score: 4.9/5 (44 votes)
Minors aren't fully allowed into contracts because they're presumed to lack the maturity, judgment, and experience to understand complex agreements, making them vulnerable to exploitation by adults, so the law makes most contracts voidable at the minor's choice to protect them from unfair deals, not to make it illegal for them to sign at all. While minors can often cancel these agreements (disaffirm) during minority or shortly after turning 18, they are usually bound by contracts for "necessaries" (food, shelter, education) and sometimes for beneficial employment or loans, though adults contracting with minors know the deal can be voided.
Why can't minors enter into contracts?
Contracts made by minors are void since, by law, they lack the legal capacity or ability to enter into legally binding agreements or contracts by themselves. The law presumes that these individuals are not fully aware of what they are doing and as such, are placed into special categories.
What happens if a minor enters into a contract?
In general, minors are considered not to have the legal capacity to enter into the contract, which is why contracts involving minors can be voided. Only the minor, however, has the right to void the contract. The other party does not have this ability.
Can a minor enter into any contract?
Thus it could be said that as per law, an agreement formed and entered into by a minor is void. Agreements with minors as per Indian contract act and also as per the Indian Contract Act states that only an individual who is a major that is who has attained the age of 18 years is competent to contract.
Do contracts work on minors?
Contracts entered into by a minor (anyone under the age of 18 in Ontario) are not binding on the minor unless they are formally ratified or authorized by him or her after reaching the age of majority. The contract, however, is still binding on the adult.
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Why are minors protected by law?
Minors are generally considered incapable of making certain legal decisions on their own, and laws are in place to protect them from exploitation and harm.
Can you enter into a contract under 18?
A minor can therefore, enter into a contract.
Further, a contract with a minor is voidable. That means they are able to cancel any contract at any time before reaching the age of 18 and for a reasonable period after that time.
How old do you have to be to legally enter into a contract?
In most states, the legal age for contracts is 18 years old. However, there are a few exceptions based on specific circumstances: Minors can enter into contracts for necessities like food, shelter, and medical care. Parental or guardian consent may be required for minors to engage in other types of contracts.
What is the effect of a contract entered into by a minor?
A contract by a minor is void. A void contract which is a dead letter cannot be revived and cannot constitute a valid consideration for a subsequent contract and, therefore, a transaction entered into by a minor during minority, cannot be ratified.
In what circumstances can a minor enter into an unassisted contract?
A minor may also enter into a contract without the assistance/consent of a parent or guardian if the contract imposes rights, but no obligations. Examples would be to accept a nomination as a beneficiary or to accept a donation.
Why can't minors contract?
Why can't minors enter into contracts? A minor by law is recognized to lack the capacity to contract. The rationale is that minors lack a full understanding of the consequences of their contracts.
Can a minor get into a contract?
As per Section 11 of the Indian Contract Act, 1872, a minor is incompetent to contract. This means: A contract with a minor is void ab initio (void from the beginning).
Can you sue a 14-year-old?
Yes, a minor can be sued for negligence, but the process and outcome may differ from cases involving adults. In most states, minors can be held liable for their actions, especially if they are older and engaged in activities that require a higher level of responsibility, such as driving a car.
Is a 17 year old still a minor?
The answer to this question in international and domestic law is clear: a child is anyone under the age of 18.
Are minors allowed to enter into contracts?
A minor needs parental consent before he can enter into an ordinary contract. If he goes ahead without such consent, the contract is not however void. It is merely voidable; that is, valid until annulled.
Why do minors have no rights?
Because of their immaturity, minors do not have the same rights as adults. Laws are written to protect children from the consequences of their acts and to prevent them from doing things that require great maturity.
Can minors legally enter into contracts?
In California, minors typically cannot enter into binding contracts unless an exception applies. Contracts signed by minors are often considered voidable, meaning they can be canceled by the minor at any time before reaching the age of majority, which is 18 in California.
Can a minor be bound by a contract?
A minor is bound by a contract of apprenticeship or employment, as long as it contains an element of education or training and is, on the whole, for their benefit. This rule recognises the importance of a minor acquiring the means of earning his or her livelihood.