Contract and Commercial Law Act 2017

Contracts legislation - Minors’ contracts - Compromise or settlement of claims by minors

104: Claim that is not subject of proceeding

You could also call this:

“Making a legal agreement as a young person to settle a claim not in court”

If you’re a young person (also called a minor) and you want to make an agreement to settle a claim that’s not in court, there are some rules you need to follow. The agreement will be binding on you if three things happen:

First, either you or someone a court thinks is good enough to act for you needs to make the agreement. Second, the claim you’re settling can’t already be in a New Zealand court. Third, the agreement or the paper that says you’re letting go of the claim needs to be written down and approved by a special court.

The special court that can approve your agreement depends on your claim. If you could take your claim to court, then any court except the Disputes Tribunal could approve it. If your claim couldn’t be taken to a New Zealand court, then a court that could handle a similar claim in New Zealand could approve it.

Remember, these rules are there to protect you and make sure any agreement you make is fair.

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View the original legislation for this page at https://legislation.govt.nz/act/public/1986/0120/latest/link.aspx?id=DLM6844225.


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103: Application, or

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


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105: Claim that has become subject of proceeding, or

"Rules for protecting minors when their claims become part of a court case"

Part 2 Contracts legislation
Minors’ contracts: Compromise or settlement of claims by minors

104Claim that is not subject of proceeding

  1. An agreement for the compromise or settlement of a claim is binding on the minor if—

  2. the agreement was entered into by the minor, or on the minor’s behalf by a person who in the opinion of a specified court is a fit and proper person to do so; and
    1. the claim is not the subject of a proceeding before any court in New Zealand; and
      1. the agreement or a release of the claim is in writing and is approved by a specified court.
        1. In this section, specified court means—

        2. a court (other than the Disputes Tribunal) in which a proceeding could be taken to enforce the claim; or
          1. in the case of a claim that could not be the subject of a proceeding in New Zealand, a court in which a proceeding could be taken to enforce a similar claim in New Zealand.
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