Legal Question in Business Law in California

Re: contracts

In California, a minor (person under 18) cannot give a power of attorney, make a contract to buy or sell any interest in real estate, or make a contract related to property not in the immediate possession or control of the minor. Such contracts are entirely void.

Furthermore, when a minor makes a contract that is not void from the outset, the minor has the right of 'disaffirmance,' i.e. the right to back out of the contract within a reasonable period of time or before reaching maturity. There is an important exception. The minor cannot disaffirm the contract IF all of the following are true: (1) the contract was for 'necessaries." (2) The necessaries were actually furnished to the minor or the minor's family. (3) The minor was either emancipated at the time or the minor's parent(s) or guardian(s) were unable to provide the necessaries.

'Necessaries" include food, clothing, shelter and basic education, but probably not cars, musical instruments, luxuries, hobby materials, etc.

There is a number of additional exceptions and fine points provided in the controlling statutes, which are found in the Family Code at section 6700 et seq., but the foregoing would cover 97% of situations that are likely to arise.