Can a minor in California be in a partnership with a non-minor?
Full Question:
Can a minor in California be in a partnership with a non-minor?
08/13/2007 |
Category: Partnerships |
State: California |
#7915
Answer:
Parties to an agreement must have contractual capacity before the agreement will be binding on both parties. Contractual capacity is the ability to understand that a contract is being made and to understand its general nature. If any party to a contract does not have contractual capacity, the contract is either void or voidable. The term "voidable" means that it can be declared void, but is not automatically void. Some sort of affirmative action must be taken to avoid the liability under a contract that is said to be voidable.
Some classes of persons such as people under the age of 21, or in most states, under the age of 18, are deemed by law to lack contractual capacity. With some exceptions, a contract made by a minor is voidable. The minor, in other words, may avoid the legal liability under a contract. Upon reaching the age of majority, a minor may affirm or ratify the contract and therefore make it contractually binding on him. The partnership agreement is the heart of a partnership, and it must be enforced as written, with very few exceptions. Part¬ners' rights are determined by the partnership agreement. If a minor is a party to such an agreement, it would be voidable by the minor.