Question:
Contracts in Ontario are voidable by minors. If so, why would anyone ever deal with a minor?
Answer:
The intention is to prevent adults from taking advantage of minors in contracts. The contract is voidable at the instance of the minor. But, many minors have the money and wish to complete the transactions that are evidenced by the contract.
So, would a car dealership sell Justin Bieber a Corvette while he was still under 18 years of age? Why not, he’s rich!
When it comes to closing day, Bieber gets car, if he pays the money.
Same situation with a downtown condo.
In both cases, if Bieber changes his mind, then he gets his deposit back and can walk away.
In many cases, where a minor suffers significant personal injuries and a large settlement is to be paid to a minor, then in order to avoid any risks, the settlement is reviewed by a Court, and it is the Court Order which is binding upon both parties, not the contract, which is one-sided.
Brian Madigan LL.B., Broker