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At common law, contracts made with minors are voidable. This means that a child that enters into a contract and then repudiates it cannot be held liable. However, a non-minor party is bound and liable. Since the contract is not void, it is deemed to exist; however, the limitations on liability severely reduce the consequences of repudiation where the minor-party is concerned.

There is one narrow exception for "necessities". Also, it is possible for a minor child to enter into a contract, at which time it is voidable, and then for the former child-party to ratify the contract once the former child-party has reached age of majority. It thereafter is enforceable against the former child-party. In seeking to enforce these types of contracts it might be possible to prove a lack of a capacity on the part of a child to understand the consequences of his or her actions or words in entering into a contract, but this would have to be a peculiar or extraordinary situation.

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Q: Are minors considered competent parties to enter an agreement?
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