common law rule surrounding minors and contracts
Minors arent generally bound by any contracts except for
- necessaries
- beneficial contracts of service
- voidable contracts (where they dont rescind)
Where the age of a minor was reduced from 21 to 18
Family law reform act 1969
Where minors are legally bound by contracts for necessaries
chapple v cooper
a minor whose husband died was liable to pay the undertakers considering the funeral was a necessary
Nash v Inman
the minor was supplied tailored goods worth 122 pound and since clothing was a necessary, he was liable to pay for these
s3 of the sale of goods act 1979
for a valid and enforceable contract to exist, the goods need be supplied and the minor is only obliged to pay a reasonable price
where the terms of a beneficial contract of service need to substantially benefit the minor for them to be bound by it
Clements v London and northwestern railway company
the minor couldnt claim he wasnt bound by his employers scheme as it benefited him substantially
where a minor isnt bound by a beneficial contract of service as it didnt benefit them substantially
De Francesco v Barnum
the girl wasnt bound by the contract as it didnt benefit her substantially
Where courts have become more lenient as to what is binding on a minor
Doyle v White city stadium ltd
the contract subsatantially benefited him as it encouraged clean and proficcient fighting
where a minor attempted to repudiate a voidable contract too late
Edwards v Carter
He tried to repudiate a marriage settlement where he agreed to transfer money he would inherit. He did this a year after inheriting the money and 4.5 years after no longer being a minor thus it was unsuccesful
where a minor is liable for any debts that arose prior to any obligations
steinberg v scala (leeds) ltd
a minor bought shares that were to be paid for in 2 installments but she was unable to pay the second one. It was held she could repudiate the contract but couldnt recover the sum paid in the first installment
minors contracts act 1987
states that a contract made by a minor is unenforcable and cant be binding
- even if the minor isnt bound, the other party will be
- if a minor already paid money under the contract they may be able to recover it if no consideration was made
- when the minor turns 18 they can ratify the contract if they wish
- ratification can be implied simply by the minor continuing the contract