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

The Basics and Formation of a Contract

Hi Everyone,

Before we analysis a contract, it is important to understand the basics and formation of a contract.  The essential elements of a contract are the intention to create a legal relationship, offer and acceptance, consideration, and legality.  A valid contract does not come into existence until one party, the offeror (or) has made an offer to the other party, the offeree(ee) who accepts it. 

For a contract to be created and become binding an offer must be made.  An offer is a promise to do something or give something of value.  Once the offer is made, there must be a form of acceptance.  For example, a man offers $15,000 for his car, and the other person accepts it.  The only person that can accept the offer is the person that the offer is made to.  An offer can lapse meaning the offer is terminated.  For example, the party could die prior to acceptance, fail to accept the offer in the time period specified or no time period is specified but doesn’t accept in reasonable time.  Another option is that the offeree rejects the offer and makes a counteroffer.  A counter offer does not accept the terms of the contract but proposes to add or modify them. 

There is no format that an offer must be made as long as it is understood to be an offer.  The offer must be communicated by the offeror for the offeree to be able to accept it.  Offers can be made verbally, in writing, or through a gesture such as raising your hand in a silent auction.  The general rule for acceptance on the other hand is that it occurs at the time of receipt but there are exceptions for mail and electronic.

Consideration involves the exchange of something.  A contract is void for lack of consideration because there must be an exchange that involves both sides. 

In addition to offer and acceptance, there must be an intention to create a legal relationship relying on presumption law.  The parties to a contract must have intended from the beginning of negotiations that legal obligations would result from the agreement.  The promisor will be bound to the promise that they make.

This is just the basics of the formation of contracts and I will go into more detail when I discuss particular cases.

-Mark

Introduction

Hello Everyone,

The purpose of this blog is to discuss the basics of contracts and their place in sports.  Contracts are a part of daily life but I will be focusing on topics related to the sports industry.

A variety of topics will be discussed particularily ones that I am passionate about including professional and amateur sports.  I hope that you will learn from my analysis of contracts in sports and join me for my exciting adventure!

-Mark