Minors+Contracts+Act+1969

= Minors Contracts Act 1969 =

**Wiki by ksak663925 **
 * Under Minors Contracts Act 1969 who will be responsible for breach a contract? **

**What is the Minors Contracts Act 1969? **  The minor’s contract however relates to people under the age of 18 who has entered a contract with a party. Minor Contracts act were built to protect them. Minors’ contracts are governed by the //Minors’ Contracts Act 1969// (MCA) The minor’s contracts act is someone who is a minor has not reached the age of 20 (//Majority Act 1970//). Before the MCA common law classified anyone under the age of 21 as an ‘infant’ – these people were only liable to pay for “necessaries” or things suitable for their financial and social status in society

**Where does this are of law come from? ** The MCA was introduced to replace the common law, because the common law was out of step with modern society. people under 21 are able to exercise a variety of rights and make decisions that have legal effect e.g. holding a drivers licence, working, holding a firearms licence, getting married, joining the armed forces and voting etc. So the government decides that the common law should be replaced by a law that suit able for modern society and introduced The MCA which fit and clearly reflects the position of minors in modern society. The MCA introduced a new body of law which applies in the area of contractual capacity


 * Under Minors Contracts Act 1969 who will be responsible for breach a contract, minors or contractor? **

Under the MCA at any party has contract with Minors, Contracts are initially unenforceable against the minor.The obligation is unenforceable against the minors because they are minors when the contract was made. However Minors can always enforce a contract against the other party. If they think the contract was un fair and the contract was not reasonable. The Court may ask Make such order entitling the minor, on such conditions as the Court thinks just, to cancel the contract. So under MCA minors will always win.

** How can business avoid getting into MCA? **

There are three way to avoid getting into MCA.

** First in **Section 9 Sections 9– obtain Court approval for minor to enter the contract. Application can be made by the minor, his/her guardian or another party to the contract. The effect of court approval is to make the contract enforceable as if the minor were an adult **Guarantee ** <span style="display: block; font-family: 'Times New Roman','serif'; font-size: 12pt; text-align: left;">Guarantee -the seller has 2 contracts, one with the minor and one with the guarantor <span style="display: block; font-family: 'Times New Roman','serif'; font-size: 12pt; text-align: left;">The second contract becomes effective only if the minor does not perform the contract. <span style="display: block; font-family: 'Times New Roman','serif'; font-size: 12pt; text-align: left;">s10 - the contract will be enforceable against the guarantor **<span style="font-family: 'Times New Roman','serif'; font-size: 12pt;">Indemnity ** <span style="display: block; font-family: 'Times New Roman','serif'; font-size: 12pt; text-align: left;">Indemnity – seller contracts with the minor and the parents together <span style="display: block; font-family: 'Times New Roman','serif'; font-size: 12pt; text-align: left;">Parents liable on the contract from when it is made. <span style="display: block; font-family: 'Times New Roman','serif'; font-size: 12pt; text-align: left;">s10 – contract enforceable against parent

For more information visit [|http://www.legislation.govt.nz] __ [] __
 * <span style="font-family: 'Times New Roman','serif'; font-size: 12pt;">Where can you find more Information? **