Is It Legal to Sign a Contract With a Minor? - Law and Daily Life
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Is It Legal to Sign a Contract With a Minor?

Adults who enter into contracts with minors may be wondering if it's legal to do so.

In general, minors don't have the legal capacity to enter into a contract unless a court approves the contract or a state's statute allows it.

So when are contracts between minors and adults enforceable in court?

Voidable Contracts

To have a valid contract, all parties signing the contract must have the legal capacity to do so. This means that the person signing must have sufficient understanding that he's entering into a contract and the terms he's agreeing to.

For most contracts, the general rule is that while it's not illegal to enter into a contract with a minor, the contract is voidable at the discretion of the minor. Voidable contracts are usually valid contracts and are binding unless the child cancels it.

On the other hand, if the minor turns 18 and doesn't cancel the contract within a reasonable period of time, the contract could become binding and enforceable.

Enforceable Contracts With Minors

While most contracts with a minor are voidable, several states have statues that allow minors to sign and be bound by a contract with an adult. These contracts usually involve insurance policies or employment agreements.

For example:

So while it may not be illegal to enter into a contract with a minor, it may not be wise to unless it's authorized by law. For more guidance on this issue, consult an experienced contracts lawyer near you.

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