Plain language law

New Zealand law explained for everyone

Contract and Commercial Law Act 2017

Contracts legislation - Minors’ contracts - Guarantees and indemnities

102: Guarantees and indemnities

You could also call this:

“Legal promises to cover for children's contracts”

If someone who isn’t a child promises to take responsibility when a child doesn’t keep their promises in a contract, that promise can be enforced. This applies to both guarantees and indemnities. The person making this promise is called a surety.

The surety’s responsibility isn’t changed by other rules about contracts with children or by any decisions made about those contracts.

However, how much the child owes the surety, and the surety’s right to claim money back from the child, might be affected by other rules or by decisions made under sections 87 to 89, 93, and 95 of this law.

This text is automatically generated. It might be out of date or be missing some parts. Find out more about how we do this.

This page was last updated on

View the original legislation for this page at https://legislation.govt.nz/act/public/1986/0120/latest/link.aspx?id=DLM6844221.

Topics:
Business > Fair trading Money and consumer rights > Consumer protection
Previous

101: Contracts relating to property held on trust, or

"Rules for making deals about things held in trust"

Next

103: Application, or

"When this law applies to claims for money or damages involving children or teenagers"

Part 2 Contracts legislation
Minors’ contracts: Guarantees and indemnities

102Guarantees and indemnities

  1. Every contract of guarantee or indemnity by which a person (other than a minor) undertakes to accept liability if a minor fails to carry out his or her obligations under a contract is enforceable against that person (the surety) to the extent that it would be enforceable if the minor had been at all material times a person of full age.

  2. The liability is not affected by—

  3. any other provision of this subpart; or
    1. any order made under this subpart.

      1. However, the liability of the minor to the surety and the surety’s right of subrogation against the minor may be affected by the other provisions of this subpart or by an order made under any of sections 87 to 89, 93, and 95.

      Compare