Professional Documents
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Minors
A contract between a minor and another party may be one of three types: 1. Valid contract
is binding in the usual way
2. Voidable contract
is binding unless and until the minor rescinds the contract
3.
Unenforceable contract
is unenforceable against the minor unless he ratifies (adopts) it but the other party is bound
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Minors
Two types of contract will bind a minor (person under the age of 18, determined by Minors Contracts Act 1987): 1. Valid Contracts
Contracts for the supply of necessary goods and services Service contract for minors benefit
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All other contracts entered into by a minor are described as unenforceable the minor is not bound (though he may ratify it) but the other party is bound.
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Any guarantee of the contract given by a capable person (adult) is valid whether it is voidable, repudiated by the minor or unenforceable and is not ratified by the minor.
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A minor may be liable to restore (bring back) certain benefits which he has received under a contract.
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a. The minor can be made to return goods and money which he still has in his possession. So if Sebastian, age 17, acquires a case of champagne on credit and fails to pay he can be required to return the goods to the seller.
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c. If the minor has sold the original goods for cash he can be ordered to hand over the sale proceeds. So if Sebastian sold the case of champagne for cash he could be required to hand over the money to the retailer.
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