CONTRACTS ENTERED BY MINORS

Read also: Age Requirements as found in the Provisions of the Civil Laws of the Philippines in Entering into Various Contracts

• The minority age in the Philippines is eighteen years old (18 years old).

• As a general rule, contracts entered into by a minor are voidable.

• Where necessaries are sold and delivered to a minor, he must pay a reasonable price therefor.

RA 6809 provides that the minority age in the Philippines has been lowered from twenty-one years old (21 years old) to eighteen years old (18 years old).  A minor needs parental consent before he can enter into an ordinary contract. If he goes ahead without such consent, the contract is not however void. It is merely voidable; that is, valid until annulled.

Civil Code provides that:

“Art. 38. Minority, insanity or imbecility, the state of being a deaf-mute, prodigality and civil interdiction are mere restrictions on capacity to act, and do not exempt the incapacitated person from certain obligations, as when the latter arise from his acts or from property relations, such as easements. “

Minority restricts or limits the legal capacity to act.

Thus, a minor cannot create a trust of any kind, nor can he act as an executor or administrator. Further, persons of either sex under eighteen years of age cannot make a will or be a witness to one.

In a contract of sale, Civil Code provides that:

“Art. 1489. xxx Where necessaries are sold and delivered to a minor or other person without capacity to act, he must pay a reasonable price therefor. xxx “

Because of limited legal capacity, when minors enter into a contract of sale, the contract is generally voidable, which is valid until annulled. However, in case of necessaries, the contract is valid and minors must pay a reasonable price for such.

Necessaries are those things which are needed for sustenance, dwelling, clothing, medical attendance, education and transportation according to the financial capacity of the family of the minor.

Accordingly, as a general rule the contracts entered into by a minor are voidable. However, where necessaries are sold and delivered to him, without the intervention of the parent or guardian, he must pay a reasonable price for such sale. The contract is, therefore, valid but the minor has the right to recover any excess above a reasonable value paid by him.

Further, minor can also be made liable as in the case of Mercado and Mercado vs. Espiritu (G.R. No. L-11872, December 1, 1917) where the court laid down the rule that a  sale of real estate effected by minors who pretended to have already reached their majority, while in fact they have not, is valid, and they cannot be permitted afterwards to excuse themselves from compliance with the obligations assumed by them or to seek their annulment.

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Alburo Alburo and Associates Law Offices specializes in business law and labor law consulting. For inquiries, you may reach us at info@alburolaw.com, or dial us at (02)7745-4391/0917-5772207.

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