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“High standards of professional work.” (IFLR1000, 2017)

08.01.2020

Can a minor enter into a contract?

On 2 January 2020, iTiesibas published an answer to the reader’s question by Laura Skromule, Senior Associate of PRIMUS DERLING.

First of all, the company has to find out what kind of contract to conclude. Let’s assume that in the particular case the cooperation of the parties corresponds to the development of the author’s work, so the parties should enter into a royalty agreement. Therefore, we will answer about the procedure of concluding a contract with a minor who has reached 16 years of age.

Regardless of the type of contract, it must be taken into account that minors lack legal capacity (there are some exceptions in law). This means that minors cannot enter into legal transactions themselves or sign contracts. A minor is represented by his or her guardian in accordance with the provisions of the Civil Law (Article 261 of the CL). Consequently, the royalty agreement must be signed on behalf of the minor by one of the minor’s parents (or another guardian).

The consideration received will be the child’s independent property within the meaning of Article 195 of the CL, which is removed from parental administration, provided that the child has reached 16 years of age. Parents are therefore obliged to transfer such consideration to the minor, if it has been received by the parents. If the minor child has opened a current account with the bank, the payment should be made to the child’s bank account.