Can a Minor Sign a Contract in the Philippines?
Quick answer
A minor (a person under eighteen) can sign a contract, but the contract is voidable. Under Articles 1327 and 1390 of the Civil Code, it is binding until a court annuls it, and the minor has four years from reaching majority to ask for annulment. If annulled, the minor returns only what still benefits him. If both parties are minors, the contract is unenforceable unless ratified.
Who is a minor?
Since Republic Act No. 6809, majority begins at eighteen. Article 234 of the Family Code, as amended, says:
Emancipation takes place by the attainment of majority. Unless otherwise provided, majority commences at the age of eighteen years.
On reaching eighteen, the person is "qualified and responsible for all acts of civil life, save the exceptions established by existing laws in special cases" (Family Code Article 236). One exception is in the same article: contracting marriage needs parental consent until twenty-one.
Some old Civil Code articles still speak of "a minor between eighteen and twenty-one years of age" (Articles 1426 and 1427). Those words come from before Republic Act No. 6809. Under the Family Code as amended, a person aged eighteen to twenty-one is no longer a minor for contracts.
Is a contract signed by a minor valid?
It is voidable. Article 1327 says "Unemancipated minors" cannot give consent to a contract. Article 1390 then sets the effect:
The following contracts are voidable or annullable, even though there may have been no damage to the contracting parties: (1) Those where one of the parties is incapable of giving consent to a contract; (2) Those where the consent is vitiated by mistake, violence, intimidation, undue influence or fraud.
These contracts are binding, unless they are annulled by a proper action in court. They are susceptible of ratification.
So the contract works until a court annuls it, and it can be ratified.
A voidable contract is different from a void one. A void contract has no effect from the start and cannot be ratified (Article 1409). A voidable contract is valid until annulled.
For void, voidable and unenforceable contracts side by side, see void vs voidable vs unenforceable contracts.
Who can ask for annulment, and when?
Article 1397 lets the action be brought by those who are bound by the contract, so the minor can. The adult who signed with him cannot: Article 1397 says "persons who are capable cannot allege the incapacity of those with whom they contracted."
The deadline is four years. Article 1391 says that when the action refers to contracts entered into by minors, the period begins "from the time the guardianship ceases." For a minor, that is on reaching majority.
What does the minor have to return?
Only what benefited him. Article 1399 says:
When the defect of the contract consists in the incapacity of one of the parties, the incapacitated person is not obliged to make any restitution except insofar as he has been benefited by the thing or price received by him.
What if both parties are minors?
Then the contract is unenforceable unless ratified (Article 1403(3)). An unenforceable contract cannot be enforced by a case in court. See the Article 1403 page.
This page does not cover what happens when a minor lied about his age. The decisions on that point were not read for this page.
How does this work in real life?
These are made-up examples to show how the rules work. They are not advice for any real case.
Paolo, sixteen, buys a motorcycle on installment and signs the contract alone. The contract is voidable (Articles 1327(1) and 1390(1)). Paolo may ask a court to annul it within four years from the time he turns eighteen (Article 1391). If it is annulled, he returns only what still benefits him (Article 1399). The seller cannot ask for annulment on the ground that Paolo was a minor (Article 1397).
Two sixteen-year-olds sign a contract to sell a phone to each other. Because both are incapable of giving consent, the contract is unenforceable unless ratified (Article 1403(3)).
Bea, nineteen, signs a lease for a room. She is of age, so her minority is not a ground to annul the contract.
When do you need a lawyer?
Talk to a lawyer if a contract signed by a minor involves land, a large loan or an installment purchase, if you want to annul a contract you signed before eighteen, or if you are a seller or lender who contracted with a minor. Ratification and the four-year period depend on the facts.
If you cannot afford a lawyer, see Free legal help in the Philippines. For the rules on contracts made without writing, see Is a verbal agreement binding? The full text is on the Article 1390 page and the Family Code Article 236 page.
Which provisions does this answer rest on?
Frequently asked questions
What is the age of majority in the Philippines?
Eighteen. Article 234 of the Family Code, as amended by Republic Act No. 6809, says majority commences at the age of eighteen years.
Is a contract signed by a minor void?
No, it is voidable. Article 1327 says unemancipated minors cannot give consent, and Article 1390 makes a contract voidable when one party is incapable of giving consent. It is binding unless annulled by a court.
How long does a minor have to annul a contract?
Four years (Article 1391). For contracts entered into by minors, the period begins from the time the guardianship ceases, which for a minor is on reaching majority.
Does the minor have to return what he received?
Only to the extent he benefited. Article 1399 says the incapacitated person is not obliged to make restitution except insofar as he has been benefited by the thing or price received.
Can the adult who contracted with a minor cancel the contract?
No. Article 1397 says persons who are capable cannot allege the incapacity of those with whom they contracted.
What if both parties are minors?
Then the contract is unenforceable unless ratified (Article 1403(3)), which means it cannot be enforced in court.
General information, not legal advice. For your case, ask a lawyer, the Public Attorney's Office (PAO) or the agency.
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