Can a Minor Buy a Car?
All parties to a contract must be "competent" for the contract to be enforceable in court. Minors are not considered competent to enter into a contract. This makes automobile dealers reluctant to sell a car to a minor.
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Rescission & Unenforceability
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Most contracts involving minors can be rescinded at the option of the minor. A minor must elect to rescind the contract and return consideration within a proscribed time period after turning the age of consent (usually 18 years old). When buying a car, the minor must give notice of rescission and return the car to the seller prior to turning age 18 or within a reasonable time period thereafter.
Exception: Necessities of Life
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Contracts for "necessities of life" (e.g., food or medical services) are generally enforceable against a minor. Some states include cars a necessity and will enforce car-purchase contracts against minors.
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Exception: Emancipated Minors and Court Approved Contracts
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Most contracts entered into with emancipated minors are fully enforceable. Emancipation is a legal process whereby a minor, with court approval, is considered an adult for most purposes. In some states, a contract with an unemancipated minor can become enforceable if the contract is approved by the court.
Tender of Consideration
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If a contract is unenforceable against a minor, the minor generally has to return the car to the seller, if he still has possession of it. The seller must return any consideration received from the minor (the down payment on a car and all payments made).
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References
- Photo Credit firma contract 10509 image by pablo from Fotolia.com
