• Read a contract before signing it.bisness image by mashe from Fotolia.com
  
  An essential element in contract law is that the parties voluntarily commit to an agreement. All parties to the contract must have the capacity to consent to the agreement. A lack of capacity occurs if a party is intoxicated, suffers from a mental illness or is a minor. Each state legislates its own definition of a child, but the majority define a minor as anyone less than 18 years of age.
  
  

Voidable Contracts

• A minor may enter a valid contract and he has the legal right to enforce the contract against an adult or company. Many businesses refuse to contract with a minor because the minor has the legal option to disaffirm a contract, even if the subject matter of the contract is destroyed by the minor. Businesses generally require a minor to involve a parent or guardian when making a non-essential purchase involving credit.
  
  

Key Exceptions

• A minor is generally liable for the reasonable value of necessities that she purchased. For example, if a 17-year-old girl is treated by a physician in an emergency, she will be liable for the reasonable value of the medical care provided. Therefore, if the minor is sent a bill for the full-market value of the emergency room visit, a court may adjust the amount if the reasonable value of the service is less. Minors are also liable for contracts involving education loans, transportation by a common carrier and child support agreements. Contracts concerning real property have special rules that may not permit the minor to disaffirm the contract during the period of minority. Some states will allow the adult party to enforce a contract with a minor if the minor is emancipated.
  
  

Duties Owed Minors

• A child who disaffirms a contract is entitled to have her consideration returned, even if the subject matter of the contract is damaged. Some states, however, require the minor to pay for the reasonable value of the use of the property. Therefore, if 16-year-old Jane destroys the car that she purchased on credit from Bob after she has driven it for a week, a court may find that Jane must reimburse Bob for the reasonable value of using the car for a week, or for the damage to the car.
  
  

Disaffirming or Ratifying the Contract

• A minor may ratify or disaffirm the contract when he reaches the age of majority or within a reasonable time thereafter. Some states allow a minor a year to disaffirm the contract, after he turns 18. A person who turns 18 may ratify the contract by his words or deeds. Courts will generally analyze whether the former minor has retained the benefit of the contract entered into during his minority to determine if the contract has been ratified by conduct.