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Contracts Entered into by Teens are Voidable

In Michigan, as in many other jurisdictions, the law surrounding contracts with minors (those under 18 years of age) stipulates that contracts entered into by minors are generally voidable at the minor's discretion. This legal principle is intended to protect minors from being bound by contracts that they may not fully understand or appreciate.



Key Points Regarding Minors and Contracts


1. Voidable Contracts: In Michigan, contracts made by individuals under the age of 18 are voidable. This means that the minor can choose to affirm or void the contract upon reaching the age of majority (18 years) or shortly thereafter. For example, if a 16-year-old enters into a contract to buy a phone, they can later decide to cancel that contract without any legal consequences.


2. Exceptions to the Rule: There are certain exceptions where contracts with minors may be enforceable. For instance, contracts for necessities such as food, clothing, shelter, or medical care may be binding. If a minor enters into a contract for a luxury item, like a video game console, the seller may not be able to enforce that contract if the minor chooses to void it.


3. Impact on Purchases by Teens: Because minors can void contracts, vendors often have policies in place to limit sales to minors. This may include requiring parental consent for significant purchases or not selling certain items (like cars or certain electronics) to minors at all.



Parental Actions Regarding Unapproved Purchases


If parents do not approve of a purchase made by their child, there are several steps they can take:


1. Communicate with the Vendor: Parents can contact the vendor to explain that the contract was made by a minor and request that the purchase be voided. Since minors have the right to void their contracts, many vendors will comply with such requests.


2. Encourage Financial Responsibility: Parents can use this as an opportunity to teach their children about financial responsibility and the implications of entering into contracts. Discussing budgeting, needs versus wants, and the importance of parental consent can be valuable lessons.


3. Monitor Purchases: Parents can set limits on their child’s ability to make purchases by monitoring their accounts, using parental controls, or requiring that any significant purchases be discussed beforehand.


4. Legal Action if Necessary: In rare cases where a vendor refuses to cooperate, parents might consider seeking legal advice to understand their options. However, this is typically unnecessary as most reputable businesses will honor the voidability of contracts with minors.



### Relevant Michigan Statutes


Under Michigan law, the relevant statutes regarding contracts and minors can be found in the Michigan Compiled Laws:


- MCL 600.1415: This statute discusses the capacity of minors to enter into contracts, stating that contracts made by minors are voidable.


- MCL 600.1401: This statute outlines the general provisions regarding the ability of individuals to enter contracts, including those who are minors.


In summary, minors in Michigan have the right to void contracts, providing them with a level of protection. Parents can take proactive measures to guide their children in financial matters and intervene in unapproved purchases. Understanding these laws can help both parents and minors navigate the complexities of contracts and purchases. 

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