Source:
Written by Margaret Fisher, Institute for Citizen Education in the Law, Seattle, Washington, to complement the student edition of Street Law (8th ed.). The Board for Judicial Administration, Public Trust and Confidence Committee member, Jennifer Garber, updated the lesson in 2019. For more information, contact the Administrative Office of the Courts (AOC), Temple of Justice, 415 12th AVe SW, PO Box 41174, Olympia, WA 98504-1174. For an electronic copy of this lesson, or to view other lesson plans, visit Judges in the Classroom on the Washington Courts Web site at: www.courts.wa.gov/education/.
Objectives:
Grade Level:
Grades 9-12
Time:
One class period (approximately 50 minutes)
Materials:
One copy of Handout 1 (Can the Minor Cancel this Contract?) for each student
Procedures:
Note: This lesson assumes the teacher has already taught the elements of a contract and the difference between void and voidable contracts.
Void means that the contract has no legal effect; it is as if the contract never existed. Voidable means that the contract can be declared invalid if one party chooses to do so. Contracts by minors for items that are not necessities are voidable. This means that minors can disaffirm their contracts provided that the contracts are not for necessities. When minors disaffirm their contracts, the contracts become invalid.
Use of this Handout is to test for students' present knowledge of minors and contract law, and to use the debriefing as a way to educate students about the law.
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Answers to Handout 1:
Response: Dan can disaffirm this contract. He is entitled to get all the money back that he has paid and he is obligated to return the item to Cascade Sound.
The fact that Dan looks older than 17 is not enough to change the outcome. However, if Dan had told Cascade Sound that he was 18 or older, he would not be able to cancel his contract.
Response: Terry may not void her loan. Under Washington State law, any written obligation signed by a minor 16 or more years of age in consideration of an educational loan from any person is enforceable as if the minor were an adult. This applies only if, prior to making the educational loan, the educational institution has certified in writing to the person making the educational loan that the minor is enrolled, or has been accepted for enrollment in the educational institution. RCW 26.30.020.
Response: Under Washington law, minors not less than 15 years of age at the nearest birthday may enter into a contract for life or disability insurance on their own life or body, for their own benefit or for the benefit of parents, spouse, child, sibling or grandparent. The minor is not permitted to void the contract because of minority. However, the minor can be excused from any unperformed agreement to pay any premium. So Juanita can stop paying the monthly premiums, but she cannot recover the money already spent. RCW 48.18.020.
Response: Under RCW 67.04.110 et seq., this contract is void. In order for a contract between a minor and organized professional baseball team to be valid, a special procedure must be followed. This applies to persons under the age of 18 years who have not graduated from high school. If the person becomes 18 during their senior year, he or she is still a minor until the end of the school year.
The prosecuting attorney of the county in which the minor's parents are living must approve the contract in writing before it is signed. The prosecutor must approve these contracts if the following facts are found:
(1) The minor has not been signed, approached or contacted, directly or indirectly, regarding a professional baseball contract except as approved by the prosecutor.
(2) The minor has been informed that approval of the contract may deprive him or her of amateur status.
(3) The parent of the minor and the minor have consented.
(4) The prosecutor has concluded that the contract meets the legal requirements.
(5) The contract permits the minor to have at least five months available each year to continue his or her high school education.
The law also makes it a gross misdemeanor for any scout to enter into a contract with a minor or to give a gift to a minor to get the minor's promise to enter into a contract. This scout is guilty of a gross misdemeanor.
Response: RCW 26.26.220 provides that no person shall enter into such a contract with an unemancipated minor female. So the contract is invalid.
Even if Jemi were emancipated or over age 18, she still may challenge the custody of the child once it is born. The person with physical custody at the time of the dispute keeps the child until the superior court makes a legal award of custody.
Response: No, Judy is obligated to pay for these items because they are "necessaries" defined as food, clothing, shelter, and medical care. Minors are bound by their contracts for food, shelter, clothing, and medical aid.
Response: Yes, Tony can do that. Students might have questioned whether or not a car is a "necessary," which would not permit voiding the contract. However, Washington State has decided that a car is not a necessary.
Response: No, George cannot do that. The law requires that in order for minors to void contracts entered into when they were minors, they must cancel within a reasonable time after turning 18. One full year beyond the 18th birthday is an unreasonable time. George will have ratified the contract and he may not get out of it.
Response: No, Miriam cannot do that. RCW 26.28.040 prevents minors from voiding their contracts when they have engaged in business as an adult and the other party had good reason to believe the minor was capable of contracting.
Response: No, they may not void their contracts. Minor parents are bound by contracts they enter into for their child.
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In Washington State, certain, but not all, contracts of minors (persons under 18) are voidable, meaning that minors can get out of their contracts if they choose to do so. The minors cannot be forced to carry out the promises they made and may cancel or refuse to honor their contracts. Minors who void their contracts must return all money and property received because of the contract that is still within their control at the time they turn 18. Minors should realize, however, that voiding their contracts will result in very poor credit history that can affect their future financial affairs.
The rule is designed to protect minors from being taken advantage of because of their age and lack of experience. However, minors will have an impossible time getting credit because of this rule. This is why most stores require a parent or other adult to co-sign any major contract. The adult co-signer is responsible for making payments if the minor doesn't honor his/her promise.
The person with whom the minor contracted cannot cancel the contract simply because the other person is a minor.
If a minor fails to disaffirm a contract within a reasonable time after reaching age 18, the contract cannot be cancelled.
Minors are bound for contracts they make for necessaries, such as food, clothing, medical attention, and housing. (A car is not a necessary.)
Minors are also bound for educational loans, provided the lender had written notice of enrollment.
Minors married to someone 18 years or older are considered adults.
Minors may enter into binding contracts for their child.
Minors may not void contracts when they have misrepresented their age to the other party or they have operated a business as an adult and the other party reasonably believed the minor was capable of contracting.
Additionally, minors may not enter into contracts with professional baseball teams without approval of the county prosecutor (and parent). Minors may not enter into contracts to bear children on behalf of others.
Directions: Read the situations that follow and decide whether or not the minor can void the contract (get out of the contract without a penalty). Give your reasons.