Minors and Contracts

Hi Everyone,

The characteristics of a valid contract include capacity, legality, and privity of contract.  In this instance, we will be focusing on capacity specifically relating to minors signing contracts.  Being a minor refers to being under the age of majority in a particular jurisdiction.  For example the age of majority is 18 years of age in Ontario but varies in other provinces including British Columbia where age of majority is 19 years of age and Nova Scotia where it is also 19 years of age.  The general rule is that a contract is not enforceable against a minor but can be enforceable by the minor.  The exception is that the contract with the minor is for necessaries of life or beneficial contracts of service.  If it is not a necessity of life such as housing, food, or clothes, then the minor can repudiate it at any time.  In addition, if the contract with the minor is not beneficial, it can be repudiated.

For example in Nash v. Inman (1908), a tailor supplied clothing to a minor who refused to pay.  The tailor sued claiming that the clothes were necessaries and therefore the minor should be required to pay a reasonable price.  The court ruled in favour of the minor because the tailored clothes were not considered necessaries since he already had adequate clothing.  This case can be found here: Nash v. Inman.

Another example is in Toronto Marlboro Junior “A” Hockey Club v. Tonelli.  Tonelli was an exceptional player and signed a player contract at 17 with the Toronto Marlboros for three years.  Upon turning 18 years of age, which is the age of majority in Ontario, Tonelli repudiated the contract and decided to sign a professional contract with a team in the WHA.  The Toronto Marlboros sued Tonelli for breach of contract.  It was dismissed because the contract didn’t benefit Tonelli.  A contract is only enforceable against a minor if it benefits the minor and the onus is on the party (Toronto Marlboros) to establish the benefit.  The WHA is professional hockey league and Tonelli would be paid compared to junior. Upon reaching the age of majority, Tonelli has the right to repudiate the contract.  The contract becomes invalid if it is not ratified after turning the age of majority. Therefore the contract between the Toronto Marlboros and Tonelli was not beneficial to the minor.  This case can be found here: Toronto Marlboro Junior "A" Hockey Club v. Tonelli.

Hope you enjoyed my discussion on minors and contracts.

-Mark