Are Contracts with Minors Enforceable?

By Diane James

Under Ohio law, adults and minors (anyone under 18 years old) are treated differently when it comes to enforcing contracts for goods or services. In general, adults are required to follow the terms of a contract. Under some circumstances though, minors are allowed to cancel a contract that they have signed.

For example: Rob, a minor, buys a car from a local car dealership and agrees to make monthly payments. Soon after, Rob decides he no longer wants the car and tells the dealership he wants to cancel the contract. The dealership cannot make Rob pay for the car and no court will help the dealership recover the cost of the car. Although Rob does not have to continue paying for the car, Rob does have to return the car to the dealership. Also, if Rob has damaged the car, he might be required to pay for the repairs.

The ability to cancel a contract is a one-way deal. The law protects only the minor. The minor can cancel the contract and walk away, but the adult must uphold their end of the bargain. For example, if an adult agrees to purchase baseball cards from a minor online, the adult cannot cancel the deal. The adult must pay for the baseball cards. However, if the minor decides not to sell the baseball cards, the adult cannot legally force the minor to do so. Although a contract with a minor is legal, any adult or company that enters into a contract with a minor does so at their own risk because minors have the ability to cancel the deal.

However, there are situations when a minor is not permitted to cancel a contract. First, a minor must walk away from a contract before they turn 18 years of age (or within a reasonable time after). In the example above, let’s say Rob makes his monthly payments each month while he is a minor. Then, after Rob turns 18, continues to make his monthly payments. At that point, he can no longer cancel the contract. The law now treats Rob as an adult who should understand the payment requirements. Second, a minor cannot cancel a contract for the purchase of important items, such as food, housing, education, medicine, or other services necessary to live. Courts will require the minor to pay for these items.

Assistance with contracts or other civil legal matters is available at Legal Aid Brief Advice Clinics. Find clinic dates and locations online: lasclev.org/events.

This article was published in Legal Aid's newsletter, "The Alert" Volume 38, Issue 3, in December 2022. See full issue at this link: “The Alert”- Volume 38, Issue 3 – Legal Aid Society of Cleveland.