Capacity to Contract - Minors

1. In the last posting about Contracts, the capacity of parties to enter into valid contracts was discussed very briefly. In this posting, we will look at how the law looks upon minors' capacity to enter into valid contracts.
2. Contract law in general stipulates certain categories of persons that do not have the power to make contracts. Some examples are people who are mentally ill, drunk or drugged. For this posting, we will look at the category of children or minors.
3. Minors do not have the power to enter into contracts. Consequently, if such a contract is made, the minor may avoid the duty to perform under such contracts. The position would be taken as if no such contract was made. 
4. There are some exceptions to the rule. This is for contracts for apprenticeships, training and education. The reason for such exception is to enable organisations some certainty in contracting with a child where such contracts are for the child to learn a trade or to acquire skills towards earning a living in the future.
5. A minor is the definition given to a child at varying ages as determined by different  countries. The defined ages are usually 18, 20 or 21.  Japan, Taiwan and Korea sets it at 20 while Australia, Canada and India sets it at 18. For certain offences relating to drink and drugs or enabling provisions like the right to vote or make a will, the defined age may vary from that applying to the age to define contractual capacity.

Until the next post, a Bite Size goodbye to everyone.