Legal contract age is the age at which a person can enter into a binding agreement. In most developed countries, minors cannot be bound by contracts, but there are exceptions. The legal age of contract varies by jurisdiction and can be affected by mental capacity and emancipation.
Legal contract age refers to how old a person must be to enter into a binding agreement. This is commonly related to a term known as the age of majority, which is the age at which a person becomes an adult. In most developed countries, children cannot be bound by contracts they may sign or may have verbally agreed to. There are cases, however, where the legal age of contract for certain agreements may include minors.
Laws and exceptions regarding the legal age of contract can vary from one jurisdiction to another. Many countries, such as Germany, Brazil and Norway, have set the age of majority at 18. Similarly, this is the legal age of contract in those countries. In Scotland, a minor, defined as a person under the age of 16, can enter into contracts that are reasonable and commonly entered into by persons of similar age and circumstances.
Generally, minors cannot be bound to contracts because they are not old enough to enter them. In many cases, if someone enters into a contract with a minor, the minor has the option of having the contract considered void. Conversely, if an adult breaches a contract with a minor, the minor can hold him responsible.
The inability to enforce contracts with minors is why they are usually denied privileges such as trade credit. With trade credit comes the promise to pay back. Businesses generally have no legal basis to recover the amounts they have lent or to take action against borrowers who are not of legal age to contract.
There are some instances where minors are considered to be within the legal age of the contract and can be held liable for breach of terms. In the UK, for example, children may be bound by contracts for basic necessities. This covers things like housing or food. They can also be held liable for certain service contracts.
If a legal dispute arises regarding a contract for which a minor may be held liable, the minor’s mental capacity is likely to be assessed. Mental capacity refers to the child’s ability to understand what he was agreeing to and the terms of the agreement. In many cases, a large leniency is granted to the minor. This is especially true when the contract concerns a subject of which the adult party has intimate knowledge. An example would be a contract between a minor and a professional who is to act as a talent agent.
Legal age of contract cannot serve as a protection against breach of contract when a person who would otherwise be considered a minor has been emancipated. Emancipation generally involves being treated as an adult in all aspects of life. This includes emancipation that comes through judicial proceedings and emancipation that comes with marriage.
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