Minors' Contracts Act 1969

1: Short Title and commencement
1: This Act may be cited as the Minors' Contracts Act 1969.
2: This Act shall come into force on 1 January 1970.
2: Interpretation
1: In this Act, unless the context otherwise requires,— court section 14 section 14A minor full age property
2: Section 2(1) court replaced 1 March 2017 section 261 District Court Act 2016 Section 2(1) minor inserted 26 April 2005 section 3(1) Minors' Contracts Amendment Act 2005 Section 2(2) repealed 26 April 2005 section 3(2) Minors' Contracts Amendment Act 2005
3: Act to bind the Crown
This Act shall bind the Crown. Contractual capacity of minors
4: Married minors
Section 4 repealed 26 April 2005 section 4(1) Minors' Contracts Amendment Act 2005
5: Certain contracts concerning life insurance, and contracts of service
1: Subject to the provisions of this section, every contract which is—
a:
b: entered into pursuant to section 66B
c: a contract of service entered into by a minor; shall have effect as if the minor were of full age.
2: If the court is satisfied in respect of any contract to which subsection (1) applies that, at the time the contract was entered into,—
a: the consideration for a minor's promise or act was so inadequate as to be unconscionable; or
b: any provision of any such contract imposing an obligation on any party thereto who was a minor was harsh or oppressive, it may, in the course of any proceedings or on application made for the purpose, cancel the contract, or decline to enforce the contract against the minor, or declare that the contract is unenforceable against the minor, whether in whole or in part, and in any case may make such order as to compensation or restitution of property under section 7
3: For the purposes of subsection (2), the court may receive evidence of commercial practice in contracts of the same kind.
4: Nothing in subsection (2) shall apply to—
a:
b: any indenture of apprenticeship to which section 29 of the Shipping and Seamen Act 1952
c: any indenture of apprenticeship entered into under section 95 section 222A section 83B of the Government Railways Act 1949 section 175B of the Coal Mines Act 1925 section 70 of the State Services Act 1962
d: any agreement entered into under section 4A
5: Nothing in this section shall apply to—
a: any contract approved by the District Court section 9
b: the compromise or settlement of any claim for money or damages made by or on behalf of any minor (whether alone or in conjunction with any other person). Section 5 heading substituted 26 April 2005 section 5(1) Minors' Contracts Amendment Act 2005 Section 5(1)﻿(a) repealed 26 April 2005 section 5(2) Minors' Contracts Amendment Act 2005 Section 5(1)﻿(b) substituted 1 April 1986 section 10 Insurance Law Reform Act 1985 Section 5(4)﻿(a) repealed 23 April 2014 section 23 Industry Training and Apprenticeships Amendment Act 2014 Section 5(4)﻿(c) amended 1 April 1990 section 105(2) Defence Act 1990 Section 5(4)﻿(c) amended 8 November 1974 Minors' Contracts Amendment Act 1974 Section 5(5)﻿(a) amended 1 March 2017 section 261 District Court Act 2016
6: Contracts of minors
1: Subject to the provisions of this section, every contract (other than a contract to which paragraph (b) or paragraph (c) of section 5(1)
2: The court may, in the course of any proceedings or on application made for the purpose, inquire into the fairness and reasonableness of any contract to which subsection (1) applies at the time the contract was entered into and—
a: if it finds that any such contract was fair and reasonable at that time it shall not be obliged to make any order but it may in its discretion—
i: enforce the contract against the minor:
ii: declare that the contract is binding on the minor, whether in whole or in part:
iii: make such order entitling the other parties to the contract, on such conditions as the court thinks just, to cancel the contract:
iv: make such order as to compensation or restitution of property under section 7
b: if it finds that any such contract was not fair and reasonable at that time it shall not be obliged to make any order but it may in its discretion—
i: cancel the contract:
ii: make such order entitling the minor, on such conditions as the court thinks just, to cancel the contract:
iii: make such order as to compensation or restitution of property under section 7
3: In exercising its discretion under subsection (2) the court shall have regard to—
a: the circumstances surrounding the making of the contract:
b: the subject matter and nature of the contract:
c: in the case of a contract relating to property, the nature and the value of the property:
d: the age and the means (if any) of the minor:
e: all other relevant circumstances.
4: Nothing in this section shall apply to—
a: any contract approved by the District Court section 9
b: the compromise or settlement of any claim for money or damages made by or on behalf of any minor (whether alone or in conjunction with any other person).
5: Nothing in this section shall limit or affect section 20 Section 6 heading substituted 26 April 2005 section 6(1) Minors' Contracts Amendment Act 2005 Section 6(1) substituted 26 April 2005 section 6(2) Minors' Contracts Amendment Act 2005 Section 6(2) substituted 8 December 1971 Minors' Contracts Amendment Act 1971 Section 6(4)﻿(a) amended 1 March 2017 section 261 District Court Act 2016
7: Compensation or restitution
1: Where the court exercises any of the powers conferred on it by subsection (2) of section 5 section 6
a: any party to the contract; or
b: a guarantor or indemnifier under a contract of guarantee or indemnity relating to a contract to which subsection (1) of section 5 section 6
c: any person claiming through or under or on behalf of any such party, guarantor, or indemnifier, such relief by way of compensation or restitution of property as the court in its discretion thinks just.
2: The court may by any order made pursuant to subsection (1) vest the whole or any part of any property that was the subject of, or the whole or any part of the consideration for, the contract in any party to the proceedings or may direct any such party to transfer or assign any such property to any other party to the proceedings.
8: Applications under section 5 or section 6
1: An application under subsection (2) of section 5 section 6
a: any person to whom the court may grant relief pursuant to section 7
b: any other person where it is material for that person to know whether the court will exercise the powers granted to it by the subsection.
2: Any order made under subsection (2) of section 5 section 6 section 7
9: Minor may enter into contract with approval of
District Court
1: Every contract entered into by a minor shall have effect as if the minor were of full age if, before the contract is entered into by the minor, it is approved under this section by the District Court
2: An application to the District Court
a: by the minor or any other person who will be a party to the proposed contract; or
b: by a guardian of the minor (if the minor is under 18 years of age)
3: The court may, in its discretion, refer any such application to a guardian of the minor, or, where the court deems it necessary for the purposes of the application, to a solicitor nominated by the court, or to Public Trust or the Māori Trustee
4: Any person to whom any such application is referred under subsection (3) may file a report in the District Court
5: The District Court section 64 section 64A 1908 No 86 s 12A 1951 No 81 s 14 Section 9 heading amended 1 April 1980 section 18(2) District Courts Amendment Act 1979 Section 9(1) amended 1 March 2017 section 261 District Court Act 2016 Section 9(2) amended 1 March 2017 section 261 District Court Act 2016 Section 9(2)﻿(b) amended 1 July 2005 section 151 Care of Children Act 2004 Section 9(3) amended 1 July 2009 section 30(2)﻿(a) Section 9(3) amended 1 March 2002 section 170(1) Public Trust Act 2001 Section 9(4) amended 1 April 1980 section 18(2) District Courts Amendment Act 1979 Section 9(5) added 27 November 1970 Minor's Contract Amendment Act 1970 Section 9(5) amended 1 March 2017 section 261 District Court Act 2016 Miscellaneous provisions
10: Guarantees and indemnities
Every contract of guarantee or indemnity whereby any person (other than a minor) undertakes to accept liability in the event of the failure of a minor to carry out his obligations under a contract shall be enforceable against that person (in this section hereinafter referred to as the surety subsection (2) of section 5 section 6 section 7
11: Contracts to marry
Section 11 repealed 3 October 1975 section 6(6) Domestic Actions Act 1975
12: Settlement of claims by minors
1: Where any money or damages are claimed by or on behalf of a minor (whether alone or in conjunction with any other person) then—
a: if the claim is not the subject of proceedings before any court in New Zealand, any agreement for the compromise or settlement of the claim entered into by the minor, or on his behalf by a person who in the opinion of a court of competent jurisdiction is a fit and proper person to do so, shall be binding on the minor if it or a release of the claim is in writing and is approved by a court of competent jurisdiction; and
b: if the claim has not been compromised or settled in accordance with
2: An application for the approval of the court under subsection (1) may be made by or on behalf of the minor or any other party to the agreement or proceedings.
3: The court, in its discretion, may refuse any application for its approval under subsection (1) or may grant its approval either unconditionally or upon or subject to such conditions and directions as it thinks fit, whether as to the terms of the agreement or of the compromise or settlement, or as to the amount, payment, securing, application, or protection of the money paid, or to be paid or otherwise.
4: Without limiting subsection (3), where the court directs that the whole or any part of any money or damages awarded to a minor in any cause or matter or of any money to which a minor is entitled under an agreement, compromise, or settlement approved under subsection (1) Public Trust
a: the amount shall be invested and held by the trustee upon trust—
i: to make such payment (if any) to the minor out of the income and capital of the amount as the court may specify; and
ii: to apply the income and capital of the amount or so much thereof as the trustee from time to time thinks fit for or towards the maintenance or education (including past maintenance or education) or the advancement or benefit of the minor:
b: the minor shall have no power, either by himself or in conjunction with any other person or persons, to terminate the trusts upon which the amount is held or to modify or extinguish those trusts:
c: the interest of the minor in the income and capital of the amount shall not, while it remains in the hands of the trustee, be alienated, or pass by bankruptcy, or be liable to be seized, sold, attached, or taken in execution by process of law.
5: Upon any minor attaining the age of 18 or entering into a civil union or a de facto relationship provided that where the trustee has made an application or received notice that an application has been made to the court for such an order he shall not make any payment under this subsection until the application has been disposed of.
6:
7: For the purposes of this section the expression court of competent jurisdiction (other than the Disputes Tribunal
8: Nothing in this section shall limit or affect—
a: the Deaths by Accidents Compensation Act 1952
b: section 98
c: the Accident Compensation Act 2001 ; or
d: section 149(3A) 1945 No 40 s 35 1957 No 36 s 66 Section 12(1)﻿(a) substituted 27 November 1970 Minors' Contracts Amendment Act 1970 Section 12(1)﻿(b) amended 27 November 1970 Minors' Contracts Amendment Act 1970 Section 12(4) amended 1 March 2002 section 170(1) Public Trust Act 2001 Section 12(4) amended 27 November 1970 Minors' Contracts Amendment Act 1970 Section 12(5) amended 26 April 2005 section 7(1) Minors' Contracts Amendment Act 2005 Section 12(5) amended 26 April 2005 section 7(2) Minors' Contracts Amendment Act 2005 Section 12(6) repealed 1 March 2002 section 170(1) Public Trust Act 2001 Section 12(7) amended 1 March 2017 section 261 District Court Act 2016 Section 12(7) amended 1 November 1976 Small Claims Tribunals Act 1976 Section 12(8)﻿(b) replaced 1 March 2017 section 261 District Court Act 2016 Section 12(8)﻿(c) substituted 1 April 2002 section 337(1) Injury Prevention, Rehabilitation, and Compensation Act 2001 Section 12(8)﻿(c) amended 1 April 2011 section 40 Employment Relations Amendment Act 2010 Section 12(8)﻿(c) amended 3 March 2010 section 5(1)﻿(b) Section 12(8)﻿(d) added 1 April 2011 section 40 Employment Relations Amendment Act 2010
13: Variation of certain orders made under section 12
1: The court may at any time vary any order made by it under section 12 section 35 section 66 of the Public Trust Office Act 1957 or Part 9A
2: Any order under this section may be made by the court of its own motion or on an application made by:
a: the minor; or
b: the trustee; or
c: any other person who adduces proof of circumstances which in the opinion of the court make it proper that he should make the application. Section 13(1) amended 1 March 2002 section 170(1) Public Trust Act 2001
14: Jurisdiction of
District Court
1: The District Court has sections 5 to 7
a: the occasion for the exercise of the power arises in the course of any civil proceedings (other than an application made for the purposes of subsection (2) of section 5 section 6
b: the value of the consideration for the promise or act of any minor under the contract is not more than $ 350,000
c: the parties agree, in accordance with section 81
2: For the purposes of sections 86 to 89 subsection (2) of section 5 section 6 Section 14 heading amended 1 March 2017 section 261 District Court Act 2016 Section 14 heading amended 1 April 1980 section 18(2) District Courts Amendment Act 1979 Section 14(1) amended 1 March 2017 section 261 District Court Act 2016 Section 14(1)﻿(b) amended 1 March 2017 section 261 District Court Act 2016 Section 14(1)﻿(b) amended 1 July 1992 section 19(1) District Courts Amendment Act 1991 Section 14(1)﻿(c) amended 1 March 2017 section 261 District Court Act 2016 Section 14(2) amended 1 March 2017 section 261 District Court Act 2016
14A: Jurisdiction of
Disputes Tribunal
1: The Disputes Tribunal established under the Disputes Tribunal Act 1988 sections 5 to 7
a: the occasion for the exercise of the power arises in the course of proceedings properly before that Tribunal; and
b: subject to subsection (3), the total amount in respect of which an order of the Tribunal is sought does not exceed $15,000
2: Subject to subsection (3), an order of the Disputes Tribunal section 7
a: require a person to pay an amount exceeding $15,000
b: declare a person not liable to another for an amount exceeding $15,000
c: vest any property exceeding $15,000
d: direct the transfer or assignment or delivery of possession of any such property— and an order of the Tribunal
3: Where, in respect of any proceedings properly before the Disputes Tribunal section 13 Disputes Tribunal Act 1988 $15,000 $20,000 Section 14A substituted 1 March 1989 section 81 Disputes Tribunals Act 1988 Section 14A heading amended 1 March 2017 section 261 District Court Act 2016 Section 14A(1) amended 1 March 2017 section 261 District Court Act 2016 Section 14A(1)﻿(b) amended 1 August 2009 section 8 Disputes Tribunals Amendment Act 2009 Section 14A(2) amended 1 March 2017 section 261 District Court Act 2016 Section 14A(2)﻿(a) amended 1 August 2009 section 8 Disputes Tribunals Amendment Act 2009 Section 14A(2)﻿(b) amended 1 August 2009 section 8 Disputes Tribunals Amendment Act 2009 Section 14A(2)﻿(c) amended 1 August 2009 section 8 Disputes Tribunals Amendment Act 2009 Section 14A(3) amended 1 March 2017 section 261 District Court Act 2016 Section 14A(3) amended 1 August 2009 section 8 Disputes Tribunals Amendment Act 2009
15: Act to be a code
1: The provisions of this Act shall have effect in place of the rules of the common law and of equity relating to the contractual capacity of minors and to the effect, validity, avoidance, repudiation, and ratification of contracts entered into by minors and to any contract of guarantee or indemnity in respect of any such contract.
2: This Act shall apply only to contracts made, compromises and settlements agreed to, and discharges and receipts given, after the commencement of this Act.
3: Nothing in this Act shall limit or affect any provision of any other enactment whereby a contract is made binding on a minor and nothing in section 5 section 6
4: Nothing in this Act shall limit or affect the rule of law whereby a minor is not liable in tort for procuring a contract by means of fraudulent representations as to his own age or any other matter, but the court shall take any such representations into account in deciding whether to exercise any of its powers under subsection (2) of section 5 section 6 section 7
16: Agreements relating to trusts
1: Nothing in this Act shall entitle—
a: a trustee to pay money or deliver property to a minor otherwise than in accordance with the terms of the trust:
b: a minor to enter into an agreement whereby a trust is extinguished or the terms of a trust are varied: provided that nothing in this subsection shall prevent any contract approved pursuant to section 9
2: Every agreement entered into by a minor who is or has been married , in a civil union, or in a de facto relationship the District Court
3: An application to the District Court
4: Subsections (3) to (5) of section 9 Section 16 substituted 8 November 1974 Minors' Contracts Amendment Act 1974 Section 16(2) amended 1 March 2017 section 261 District Court Act 2016 Section 16(2) amended 26 April 2005 section 8 Minors' Contracts Amendment Act 2005 Section 16(3) amended 1 March 2017 section 261 District Court Act 2016
17: Insurances by minors and dealings by minors with policies
Section 17 repealed 1 April 1986 section 11(e) Insurance Law Reform Act 1985
18: Consequential amendments
The enactments specified in Schedule 1
19: Repeals and revocation
1: The enactments specified in Schedule 2
2: Amendment(s) incorporated in the rules