Tweetie Bird said:
Yesterday, (1/27/01) my 15 year old son purchased some boots from the Gallery in Center City Philadelphia for $110.00 without my permission. I wished to return them but was told by the owner I could not receive a cash refund. What does state and/or city law dictate on retail cash returns when receipt and merchandise purchased are submitted to retailer.
[Edited by Tweetie Bird on 01-28-2001 at 09:19 AM]
My response:
Your son may disaffirm the contract concerning the sale of the shoes. However, some merchants are ignorant of the laws in this regard, or will pay no attention to the laws even when faced with those facts. Below, I give you a summary of a minor's right to disaffirm a contract, but that does not mean it's automatic. You may, in fact, be required to enforce your child's right of disaffirmance in a court of law.
If a party to a contract lacks capacity, such as being a minor, an essential element for a valid contract is missing, and the contract is void. Persons who are minors, intoxicated, or mentally incompetent but not yet adjudicated officially as such, have capacity to enter into a contract; but if they wish, they can normally avoid liability under the contract, which is said to be voidable.
I. MINORS
In most states, the age of majority for contractual purposes is eighteen. A minor can enter into any contract that an adult can enter into, as long as it is not prohibited by law for minors (for example, the sale of alcoholic beverages).
A. MINOR'S RIGHT TO DISAFFIRM
A minor can disaffirm (renounce) a contract and set aside all legal obligations arising from it. (An adult who enters into a contract with a minor, however, cannot avoid his or her contractual duties on the ground that the minor can do so.)
1. Disaffirmance in General
To avoid a contract, a minor need only manifest an intent not to be bound by it. This intent may be expressed by words or conduct.
a. Time of Disaffirmance
A contract can ordinarily be disaffirmed at any time during minority or for a reasonable time after a minor comes of age.
b. Contracts That Cannot Be Disaffirmed
1) Partial Contract
A minor must disaffirm an entire contract (not merely part).
2) Disaffirmance Prohibited by Statute
In most states, a minor can disaffirm a contract for a sale of land only after attaining majority. Other statutes prohibit minors from avoiding contracts for student loans, medical care, insurance, or made pursuant to running a business.
3) Contracts Enforced by Public Policy
Some promises may be enforced, especially when they involve something that the law would compel anyway, such as financial support of an illegitimate child.
4) Contracts That Have Been Ratified
A minor who fails to disaffirm a contract within a reasonable time after reaching majority is bound-the contract is ratified.
2. Minor's Obligations on Disaffirmance
A minor cannot disaffirm a fully executed contract without returning whatever goods have been received or paying their reasonable value.
a. What the Adult Recovers
1) In Most States
If the goods (or other consideration) are in the minor's control, the minor must return them (without added compensation).
2) In a Growing Number of States
If the goods have been used, damaged, or ruined, the adult must be restored to the position he or she held before the contract.
b. What the Minor Recovers
All property that a minor has transferred to an adult as consideration, even if it is in the hands of a third party. If the property cannot be returned, the adult must pay the minor its value.
3. Misrepresentation of Age
a. In Most States
A minor who misrepresents his or her age can still disaffirm a contract. In some states, he or she is not liable for fraud, because indirectly that might force the minor to perform the contract.
b. In Some States
Some states prohibit disaffirmance; some courts refuse to allow minors to disaffirm executed contracts unless they can return the consideration; some courts allow a minor to disaffirm but hold the minor liable for damages for fraud.
4. Emancipation
A parent's relinquishing the right to the minor's control, care, custody, and earnings. May be express or implied, absolute or conditional.
5. Liability for Necessaries
Necessaries are food, clothing, shelter, medicine, and hospital care-whatever a court believes is necessary to maintain a person's status.
a. Minor's Liability
A minor may disaffirm the contract but remains liable for the reasonable value (to avoid unjust enrichment).
b. Parents' Liability
If a minor's parent is able to provide the minor with necessaries but fails to do so, the parent will be liable to a seller or provider for the reasonable value of the necessaries.
6. Insurance and Loans
a. Insurance
Some jurisdictions prohibit a minor's right to disaffirm insurance contracts. Others allow it but limit recovery to the value of premiums paid, less the cost of protecting the minor under the policy.
b. Loans
A loan is seldom viewed as a necessary, but if the loan is for the express purpose of enabling the minor to buy necessaries and the lender makes sure the money is so spent, then the minor must repay.
B. RATIFICATION
An act or an expression in words by which a person, after reaching majority, indicates an intention to be bound by a contract made as a minor.
1. Express Ratification
Occurs when the individual, on reaching the age of majority, states orally or in writing that he or she intends to be bound by the contract.
2. Implied Ratification
Occurs when an individual, after reaching majority, continues to use and make payments on property bought as a minor, implicitly indicating an intent to be bound by the contract.
C. NON VOIDABLE CONTRACTS
Some states prohibit minors from disaffirming certain contracts. Some impose duties with respect to bank accounts and transfers of stock. Some contracts are enforced on the grounds of public policy.
IAAL
