On the other hand, trading contracts with a minor will not be enforced.
Voidable contracts
A third type of contract with a minor which may be binding is where a
minor enters into an agreement of continuing obligation. This is a contract
of an ongoing nature, such as the renting of accommodation. In this case
the contract will be regarded as valid, unless the minor repudiates it before
reaching 18, or within a reasonable time afterwards. This leaves a workable
arrangement for those dealing with a minor, but gives the minor an
opportunity to ‘escape’ if he later regrets his action.
In the case of Edwards v Carter (1893) Lord Watson explained the
position as follows. ‘If he [meaning the minor] chooses to be inactive, his
opportunity passes away; if he chooses to be active, the law comes to his
assistance,’ meaning that the minor has an opportunity to excuse himself
Capacity 85lost his ‘purse’ – the prize money from a fight – but the contract was
seen to be on the whole beneficial to him, despite this one clause which
was disadvantageous, because of the training which he received.Chaplin v Leslie Frewin (1966)
A contract made by the son of Charlie Chaplin to write his
autobiography was held binding, as it enabled the minor to begin to
earn his living as an author.Roberts v Gray (1913)
When a billiards player agreed to take a minor on a world billiards tour,
providing his lodging and travelling arrangements under the contract,
this was viewed by the court as ‘a kind of education’. The minor later
changed his mind and claimed the contract unenforceable, but was held
liable in damages.Mercantile Union Guarantee v Ball (1937)
A contract of hire purchase by a minor running his own haulage
business was held unenforceable. Although this is a measure to protect
the minor, it could be seen as putting a young person who wishes to run
his own business at a disadvantage, for example as a market trader or
other retailer, compared with a similar minor who is employed. It is an
example of the courts looking after the interests of the minor, by
preventing him from taking financial risks, without the necessary
experience, and it could be argued that this is not necessarily a bad
position, given that the age of majority is now 18.