What is S4-9?

How can an infant be involved in a valid and binding contract?

The term young person is used here to refer to anyone under the age of 18 years (s.3 Age of Majority Act 1977 (Vic) and s3 age of Majority Act 1973 (Tas) ). Sometimes legal writing refers to minors or infant. The exact capacity of young people to bind themselves and be bound by contract is limited but also unclear, because no Act of Parliament completely covers this area of law. The Supreme Court Act 1986 (Vic) in sections 49 to 51, "Contracts of Minors", is the most useful reference on this question. Binding contracts and young people Contracts for the supply of "necessaries" will generally be binding. There are no hard and fast rules to identify what is "a necessary", but it does include the sorts of things the young person needs to live a reasonable lifestyle. It includes basics such as: food; clothing; a place to live; medicine, and so on. It will also include any contracts relating to the young person's education, apprenticeship or something very similar, if it can be shown to be of benefit to the young person. While a court has not yet considered the issue specifically, mobile phones are probably not necessaries. The young person contracting in this situation will be held bound to pay a reasonable price (although that may not be the contract price) for necessaries actually sold and delivered. ("Delivery" is a technical term. Generally, delivery takes place when the seller has given the buyer the power to take the goods away.) Where necessaries have been sold but there has been no delivery, the young person does not have to take delivery or pay for the goods. Non-binding contracts and young people (Supreme Court Act 1986 (Vic) s49 and s50) Two classes of contracts are not binding on a young person, namely: contracts which are not for necessaries; and contracts for the repayment of money lent or to be lent (that is, any form of credit contract). Where a young person has already paid money under a non-binding contract, that money will not be recoverable unless no benefit has been received by the young person. The young person can, however, refuse to make any further payments under the contract. It is not certain who then owns goods that are not necessaries. It appears that they become the property of the young person unless the young person has fraudulently misrepresented their age. Even after turning 18, a person cannot confirm a prior contract and then become bound by it. Any money paid by a young person under such circumstances may be recovered.

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How can an infant be involved in a valid and binding contract?

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