Minors and ContractsSource: Show
Written by Margaret Fisher, Institute for Citizen Education in the Law, Seattle, Washington, to complement the student edition of Street Law (8th ed.). The Board for Judicial Administration, Public Trust and Confidence Committee member, Jennifer Garber, updated the lesson in 2019. For more information, contact the Administrative Office of the Courts (AOC), Temple of Justice, 415 12th AVe SW, PO Box 41174, Olympia, WA 98504-1174. For an electronic copy of this lesson, or to view other lesson plans, visit Judges in the Classroom on the Washington Courts Web site at: www.courts.wa.gov/education/. Objectives:
Grade Level: Grades 9-12 Time: One class period (approximately 50 minutes) Materials: One copy of Handout 1 (Can the Minor Cancel this Contract?) for each student Procedures:
Note: This lesson assumes the teacher has already taught the elements of a contract and the difference between void and voidable contracts.
Void means that the contract has no legal effect; it is as if the contract never existed. Voidable means that the contract can be declared invalid if one party chooses to do so. Contracts by minors for items that are not necessities are voidable. This means that minors can disaffirm their contracts provided that the contracts are not for necessities. When minors disaffirm their contracts, the contracts become invalid. Use of this Handout is to test for students' present knowledge of minors and contract law, and to use the debriefing as a way to educate students about the law. **************************************** ***************************************** In Washington State, certain, but not all, contracts of minors (persons under 18) are voidable, meaning that minors can get out of their contracts if they choose to do so. The minors cannot be forced to carry out the promises they made and may cancel or refuse to honor their contracts. Minors who void their contracts must return all money and property received because of the contract that is still within their control at the time they turn 18. Minors should realize, however, that voiding their contracts will result in very poor credit history that can affect their future financial affairs. The rule is designed to protect minors from being taken advantage of because of their age and lack of experience. However, minors will have an impossible time getting credit because of this rule. This is why most stores require a parent or other adult to co-sign any major contract. The adult co-signer is responsible for making payments if the minor doesn't honor his/her promise. The person with whom the minor contracted cannot cancel the contract simply because the other person is a minor. If a minor fails to disaffirm a contract within a reasonable time after reaching age 18, the contract cannot be cancelled. Minors are bound for contracts they make for necessaries, such as food, clothing, medical attention, and housing. (A car is not a necessary.) Minors are also bound for educational loans, provided the lender had written notice of enrollment. Minors married to someone 18 years or older are considered adults. Minors may enter into binding contracts for their child. Minors may not void contracts when they have misrepresented their age to the other party or they have operated a business as an adult and the other party reasonably believed the minor was capable of contracting. Additionally, minors may not enter into contracts with professional baseball teams without approval of the county prosecutor (and parent). Minors may not enter into contracts to bear children on behalf of others. HANDOUT 1Can The Minor Cancel This Contract?Directions: Read the situations that follow and decide whether or not the minor can void the contract (get out of the contract without a penalty). Give your reasons.
What is the minor's right to Disaffirm a contract?Disaffirmance is the right for one party to renounce a contract. The person must indicate that they will not be bound by the terms outlined in the agreement expressly or implicitly. People who can prove they lacked the capacity to enter a legally binding contract and minors can disaffirm a contract.
What does a minor need to do to Disaffirm a contract quizlet?A minor has the right to disaffirm a portion of a contract. If a minor chooses to disaffirm a contract, he or she must void the entire contract.
Which of the following is a correct statement regarding the enforcement of a contract with a person who is not lawfully licensed?Which of the following is a correct statement regarding the enforcement of a contract with a person who is not lawfully licensed? In a "no license, no contract" state, no agreement with an unlicensed professional is enforceable.
Which of the following is true of contracts entered into by minors?Which of the following is true of contracts of minors? All contracts must be for a lawful purpose otherwise they would be considered void.
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