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Contract and Commercial Law Act 2017

Contracts legislation - Minors’ contracts - Subpart to be code

115: This subpart to be code

You could also call this:

“This section sets out all the rules for contracts involving kids”

This part of the law replaces the old rules about how kids can make contracts. It covers things like what kinds of contracts kids can make, whether those contracts are valid, and what happens if a kid wants to cancel a contract. It also covers situations where someone else promises to pay if a kid doesn’t follow through on their contract.

If another law says a kid can make a binding contract, that law still applies. This part doesn’t change that. Also, this part doesn’t affect the rule that says a kid can’t be sued for lying about their age or other things to trick someone into making a contract with them.

However, if a kid does lie to get someone to make a contract, the court will think about that when deciding what to do about the contract. The court can use its powers to make decisions about contracts involving kids, even if the kid lied.

Remember, when we say “kids” here, we mean people who are not old enough to be considered adults in the eyes of the law. These rules are here to protect young people who might not fully understand the consequences of making contracts.

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View the original legislation for this page at https://legislation.govt.nz/act/public/1986/0120/latest/link.aspx?id=DLM6844242.

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114: Jurisdiction of Disputes Tribunal, or

"The Disputes Tribunal can decide on small legal cases up to $30,000"

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116: Effect of this subpart on trust, or

"Explains what trustees and minors can do with trust money and agreements"

Part 2 Contracts legislation
Minors’ contracts: Subpart to be code

115This subpart to be code

  1. This subpart has effect in place of the rules of the common law and of equity relating to—

  2. the contractual capacity of minors; and
    1. the effect, validity, avoidance, repudiation, and ratification of contracts entered into by minors; and
      1. any contract of guarantee or indemnity in respect of contracts entered into by minors.

        1. Nothing in this subpart limits or affects any provision of any other enactment under which a contract is made binding on a minor, and nothing in sections 86 to 94 applies to the contract.

        2. Nothing in this subpart limits or affects the rule of law under which a minor is not liable in tort for procuring a contract by fraudulent representations as to his or her own age or any other matter.

        3. However, the court must take a representation referred to in subsection (3) into account in deciding whether to exercise any of its powers under sections 87 to 89 or section 93 or 95.

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