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Minor Contracts Act 1987?
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Minor Contracts Act 1987?

I have a case: "Robinson’s youngest daughter, Emily is 16 years old and she borrowed money from London South Bank to set up her own small but successful business, selling dance and stage clothing and equipment, the proceeds of which pay for singing and dancing lessons. Mr. Robinson had provided a guarantee for repayment of the loan. After a few months, Emily’s main supplier finds out that she is only 16 and refuses to trade further with her. This leaves Emily without enough business to pay for this month’s lessons, and her teacher is pressing her to meet her obligations. She is also behind with the payments on her mobile telephone account, and has received a demand for payment." So I want to ask: what types of the 2 contracts between Emily - London South Bank and Emily - her main supplier are? valid, voidable or unenforceable contract??? Please answer me...







arbiter
Rating
The contract with the supplier (whether written or not, a contract exists) is not likely to be valid unless it can be argued that it is for 'necessaries'. The loan from the bank is unenforceable since it is illegal to lend money to persons under 18.


Judge Julie
Rating
Mr. Robinson must make the Bank whole (or pay Emily's bills) because he is the guarantor of the loan. If Emily Signed a contract with her main supplier - which I doubt - as she was buying materials and paying for them without setting up a credit arrangement (I presume) the contract would be null and void as minors cannot enter into a "contract" - same for the Mobile telephone contract. Non are valid and all are unenforceable - except that Mr. Robinson has signed a valid agreement with the Bank.







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