Minors and Contracts

Contracts are part of daily life, from buying a sandwich to topping up a travel card or tapping to pay for a coffee. Children do the same. Knowing where your child stands when they agree to something, and where you stand as a parent, can save a lot of trouble later.

In English law, a minor is anyone under 18. A contract needs an offer, acceptance and some form of consideration (usually money) to be legally binding. Very young children are not treated as capable of making contracts at all, and in practice the courts look at whether a child actually understood what they were agreeing to.

Contracts entered into by minors are often voidable at the child's discretion rather than fully binding. The child can repudiate the deal at any point before they turn 18, or within a reasonable time afterwards, without needing a good reason. In some cases, a minor who wants to void a contract will need to make that repudiation clear after turning 18, otherwise they may be treated as having accepted it. The other side, usually an adult or a business, does not have the same freedom. The rule exists to protect under 18s from bad bargains they may not have fully understood.

A "reasonable time" is not defined precisely and will depend on the circumstances, but in practice it tends to mean a matter of months rather than years after the 18th birthday.

There are some important exceptions, and this is where things get more interesting.

Employment, apprenticeships and training

Contracts for employment, apprenticeships and education are treated differently. If the arrangement is, on the whole, for the young person's benefit, it can be binding. The reason is practical: employers and training providers need some certainty when they take on a young worker or apprentice, and young people themselves benefit from being able to earn and learn.

The contract still has to be broadly beneficial to the child. If the terms are harsh or one sided, a court may refuse to enforce it. Even where a contract of service is binding, a court will not force anyone to keep working for someone else. The remedy in a dispute is usually damages rather than an order to carry on in the job.

Necessaries

A minor is also bound to pay a reasonable price for what the law calls "necessaries". This comes from the Sale of Goods Act 1979 and covers things a child genuinely needs, taking into account their actual circumstances. Food, basic clothing and somewhere to live are obvious examples. What counts as a necessary depends on the child's standard of living and what they already have. A second winter coat when they already own three probably would not qualify.

Note that the child only has to pay a reasonable price, not necessarily whatever price was agreed. A shop that charges a teenager well over the odds for school uniform cannot rely on the contract to recover the full amount.

Property and ongoing obligations

If a young person takes on property that carries continuing obligations, such as a lease or shares in a company that are not fully paid up, they are bound by those obligations while they hold the property. They can still end the arrangement before their 18th birthday or within a reasonable time afterwards. What they generally cannot do is claw back money they have already paid, unless they got nothing at all in return.

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When a contract cannot be enforced against a minor

If a child gets goods under a contract that turns out to be unenforceable, the seller cannot sue for the price or for damages. That does not leave the seller with nothing. Under the Minors' Contracts Act 1987, a court can order the child to return any property they still have, or property representing it, if the court thinks it is just and equitable to do so.

So if a teenager orders something expensive, keeps it, and then refuses to pay, a court may require the item to be handed back even though the contract itself cannot be enforced. The rule stops under 18s from using their protected status simply to get goods for free.

Your situation may be slightly different. ask a question below ↓ and our editorial team will reply with our advice.

The role of parents

Parents cannot usually sign a contract on a child's behalf that binds the child as if they were an adult. However, parental involvement can still matter. A parent may co-sign an agreement so that they are personally bound alongside the child, or act as guarantor so the business has someone to pursue if the child defaults. For some significant contracts, such as settlements of legal claims involving a minor, court approval is required before the agreement takes effect, and this is there to safeguard the child's interests.

Acting as guarantor

Because contracts with minors are harder to enforce, companies often ask a parent or another adult to act as guarantor. This is common when a young person wants to rent a flat, buy a car on finance, take out a loan or take out a mortgage. As guarantor you are promising that you will step in and meet the obligations if your child does not.

If your child misses payments, the lender or landlord can come after you rather than them. That might mean covering rent, clearing arrears on a car finance agreement or repaying a loan in full. Being a guarantor is a serious commitment and can affect your own credit file and finances for years. Before signing anything, read the whole agreement, check how and when you can be called on, and ask whether there is a cap on your liability. If anything is unclear, get legal advice or speak to Citizens Advice before you put your name to it.

Practical points for parents

• Most contracts a child enters into are voidable by the child, but not by the other side.
• Employment, apprenticeship and training contracts can be binding if they are, overall, for the child's benefit.
• Children must pay a reasonable price for genuine necessaries.
• Courts can order goods to be returned under the Minors' Contracts Act 1987 where it is fair to do so.
• Some significant contracts involving minors need court approval to take effect.
• A guarantor takes on real legal and financial risk, so treat any request to sign as guarantor with caution.

If you are unsure where you or your child stand on a particular agreement, it is usually worth getting tailored advice. A local solicitor, Citizens Advice, or the free guidance on GOV.UK are all sensible starting points. The law in this area is designed to protect young people, but it does not give them, or their parents, a free pass.

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