MBE Rules · Contracts
Minority (incapacity)
The rule
Contracts by minors (under 18) are voidable at the minor's election. The minor may disaffirm any time before reaching majority or within a reasonable time after. Exception: contracts for necessaries (food, clothing, shelter, medical care) — minor liable for reasonable value.
In plain English
If someone under 18 makes a contract, they can cancel it anytime before they turn 18 or shortly after. But if it's for essentials like food or housing, they still have to pay for what they received.
Worked example
A 17-year-old buys a guitar but decides to cancel the deal a month later. They can do this because they're a minor. However, if they rented an apartment, they must pay rent for the time they lived there.
Memory hook
Minor's Might: Void or Value. Minors can void contracts unless it's for necessaries, where they're liable for the reasonable value.
The trap
Students think: All minor contracts are void. Wrong, because they're voidable by the minor, not void. The actual test is whether the minor disaffirms before reaching majority or shortly after.
How examiners test it
The MBE loves: a minor enters a contract, then turns 18. Question: can they disaffirm? Trap: students miss the reasonable time after majority to disaffirm.
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