	Title
1	Short Title and commencement
2	Interpretation
3	Act to bind the Crown
	Contractual capacity of minors
4	Married minors [Repealed]
5	Certain contracts concerning life insurance, and contracts of service
6	Contracts of minors
7	Compensation or restitution
8	Applications under section 5 or section 6
9	Minor may enter into contract with approval of District Court
	Miscellaneous provisions
10	Guarantees and indemnities
11	Contracts to marry [Repealed]
12	Settlement of claims by minors
13	Variation of certain orders made under section 12
14	Jurisdiction of District Courts
14A	Jurisdiction of Disputes Tribunals
15	Act to be a code
16	Agreements relating to trusts
17	Insurances by minors and dealings by minors with policies [Repealed]
18	Consequential amendments
19	Repeals and revocation
	Schedule 1 Enactments amended
	Schedule 2 Enactments repealed
	Reprint notes

An Act to restate and reform the law relating to minors’ contracts

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 means the High Court or a District Court that has jurisdiction under section 14 or a Disputes Tribunal that has jurisdiction under section 14A

minor means a person who has not attained the age of 18 years; and a person is of full age if he or she has attained the age of 18 years

property means land, money, goods, things in action, goodwill, and every valuable thing, whether real or personal, and whether situated in New Zealand or elsewhere; and includes obligations, easements, and every description of estate, interest, and profit, present or future, vested or contingent, arising out of or incident to property.

(2)

[Repealed]

Section 2(1) court: substituted, on 1 March 1989, by section 79 of the Disputes Tribunals Act 1988 (1988 No 110).

Section 2(1) minor: inserted, on 26 April 2005, by section 3(1) of the Minors’ Contracts Amendment Act 2005 (2005 No 16).

Section 2(2): repealed, on 26 April 2005, by section 3(2) of the Minors’ Contracts Amendment Act 2005 (2005 No 16).

3 Act to bind the Crown

This Act shall bind the Crown.

Contractual capacity of minors

4 Married minors

[Repealed]

Section 4: repealed, on 26 April 2005, by section 4(1) of the Minors’ Contracts Amendment Act 2005 (2005 No 16).

5 Certain contracts concerning life insurance, and contracts of service

(1)

Subject to the provisions of this section, every contract which is—

(a)

[Repealed]

(b)

entered into pursuant to section 66B of the Life Insurance Act 1908 by a minor who has attained the age of 16 years; or

(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 as it thinks just.

(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)

[Repealed]

(b)

any indenture of apprenticeship to which section 29 of the Shipping and Seamen Act 1952 applies; or

(c)

any indenture of apprenticeship entered into under section 95 of the Defence Act 1990, section 222A of the Post Office Act 1959, section 83B of the Government Railways Act 1949, section 175B of the Coal Mines Act 1925, or section 70 of the State Services Act 1962; or

(d)

any agreement entered into under section 4A of the Maori Housing Amendment Act 1938.

(5)

Nothing in this section shall apply to—

(a)

any contract approved by a District Court pursuant to section 9; or

(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, on 26 April 2005, by section 5(1) of the Minors’ Contracts Amendment Act 2005 (2005 No 16).

Section 5(1)(a): repealed, on 26 April 2005, by section 5(2) of the Minors’ Contracts Amendment Act 2005 (2005 No 16).

Section 5(1)(b): substituted, on 1 April 1986, by section 10 of the Insurance Law Reform Act 1985 (1985 No 117).

Section 5(4)(a): repealed, on 23 April 2014, by section 23 of the Industry Training and Apprenticeships Amendment Act 2014 (2014 No 16).

Section 5(4)(c): amended, on 1 April 1990, pursuant to section 105(2) of the Defence Act 1990 (1990 No 28).

Section 5(4)(c): amended (with effect on 1 January 1970), on 8 November 1974, by section 2 of the Minors’ Contracts Amendment Act 1974 (1974 No 107).

Section 5(5)(a): amended, on 1 April 1980, pursuant to section 18(2) of the District Courts Amendment Act 1979 (1979 No 125).

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) applies) entered into by a minor is unenforceable against the minor but otherwise has effect as if the minor were of full age.

(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 as it thinks just; and

(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 as it thinks just.

(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 a District Court pursuant to section 9; or

(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 of the Trustee Act 1956.

Section 6 heading: substituted, on 26 April 2005, by section 6(1) of the Minors’ Contracts Amendment Act 2005 (2005 No 16).

Section 6(1): substituted, on 26 April 2005, by section 6(2) of the Minors’ Contracts Amendment Act 2005 (2005 No 16).

Section 6(2): substituted, on 8 December 1971, by section 2 of the Minors’ Contracts Amendment Act 1971 (1971 No 111).

Section 6(4)(a): amended, on 1 April 1980, pursuant to section 18(2) of the District Courts Amendment Act 1979 (1979 No 125).

7 Compensation or restitution

(1)

Where the court exercises any of the powers conferred on it by subsection (2) of section 5 or where it may exercise any of the powers conferred on it by subsection (2) of section 6 (whether or not it exercises any of those powers), the court may grant to—

(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 or subsection (1) of section 6 applies; or

(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 or subsection (2) of section 6 may be made by—

(a)

any person to whom the court may grant relief pursuant to section 7; or

(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 or subsection (2) of section 6 or pursuant to section 7, or any provision of any such order, may be made upon and subject to such terms and conditions as the court thinks fit.

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 a District Court.

(2)

An application to a District Court under this section may be made—

(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, or to any other person, and may make such order as it thinks fit for the payment of the reasonable costs and expenses of any person to whom the application is so referred.

(4)

Any person to whom any such application is referred under subsection (3) may file a report in the District Court setting out the results of his consideration and examination of the application and making in respect thereof such recommendations as he thinks proper, and may appear and be heard at the hearing of the application; but no such person shall be under any obligation to consider or examine any such application until his reasonable costs and expenses have been paid or secured to his satisfaction.

(5)

A District Court shall not approve a contract under this section where the contract relates to property held on trust and the court is of the opinion that it is a case in which it would be more appropriate for an application to be made under section 64 or section 64A of the Trustee Act 1956.

Compare: 1908 No 86 s 12A; 1951 No 81 s 14

Section 9 heading: amended, on 1 April 1980, pursuant to section 18(2) of the District Courts Amendment Act 1979 (1979 No 125).

Section 9(1): amended, on 1 April 1980, pursuant to section 18(2) of the District Courts Amendment Act 1979 (1979 No 125).

Section 9(2): amended, on 1 April 1980, pursuant to section 18(2) of the District Courts Amendment Act 1979 (1979 No 125).

Section 9(2)(b): amended, on 1 July 2005, by section 151 of the Care of Children Act 2004 (2004 No 90).

Section 9(3): amended, on 1 July 2009, pursuant to section 30(2)(a) of the Māori Trustee Amendment Act 2009 (2009 No 12).

Section 9(3): amended, on 1 March 2002, by section 170(1) of the Public Trust Act 2001 (2001 No 100).

Section 9(4): amended, on 1 April 1980, pursuant to section 18(2) of the District Courts Amendment Act 1979 (1979 No 125).

Section 5(5): added, on 27 November 1970, by section 2(1) of the Minor’s Contract Amendment Act 1970 (1970 No 88).

Section 9(5): amended, on 1 April 1980, pursuant to section 18(2) of the District Courts Amendment Act 1979 (1979 No 125).

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) to the extent that it would be if the minor had been at all material times a person of full age, and that liability shall not be affected by any other provision of this Act or by any order made pursuant to any other provision of this Act; but the liability of the minor to the surety and the surety’s right of subrogation against the minor may be affected by the other provisions of this Act or by any order made under subsection (2) of section 5 or subsection (2) of section 6 or pursuant to section 7.

11 Contracts to marry

[Repealed]

Section 11: repealed, on 3 October 1975, by section 6(6) of the Domestic Actions Act 1975 (1975 No 53).

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 paragraph (a), and has become the subject of proceedings before any court in New Zealand, no settlement, compromise, or payment and no acceptance of money paid into court, whenever entered into or made, shall so far as it relates to that minor’s claim be valid without the approval of the court.

(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) shall be held on trust for the minor under this subsection by Public Trust or any other person then, except so far as the court directs any immediate payment therefrom or otherwise orders, and subject to any directions or conditions given or imposed by the court—

(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 years or marrying or entering into a civil union or a de facto relationship under that age while any amount is held on trust for his benefit under subsection (4), the balance of that amount and of the income therefrom remaining in the hands of the trustee shall be paid to the minor except in so far as the court may have ordered before the payment is made that the whole or any part of that amount shall continue to be held on trust under that subsection:

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)

[Repealed]

(7)

For the purposes of this section the expression court of competent jurisdiction means a court (other than a Disputes Tribunal) in which proceedings could be taken to enforce the claim or, in the case of a claim that could not be the subject of proceedings in New Zealand, a court in which proceedings could be taken to enforce a similar claim in New Zealand.

(8)

Nothing in this section shall limit or affect—

(a)

the Deaths by Accidents Compensation Act 1952; or

(b)

section 50 of the District Courts Act 1947; or

(c)

the Accident Compensation Act 2001; or

(d)

section 149(3A) of the Employment Relations Act 2000.

Compare: 1945 No 40 s 35; 1957 No 36 s 66

Section 12(1)(a): substituted, on 27 November 1970, by section 3(1) of the Minors’ Contracts Amendment Act 1970 (1970 No 88).

Section 12(1)(b): amended, on 27 November 1970, by section 3(2) of the Minors’ Contracts Amendment Act 1970 (1970 No 88).

Section 12(4): amended, on 1 March 2002, by section 170(1) of the Public Trust Act 2001 (2001 No 100).

Section 12(4): amended (with effect on 1 January 1970), on 27 November 1970, by section 3(3) of the Minors’ Contracts Amendment Act 1970 (1970 No 88).

Section 12(5): amended, on 26 April 2005, by section 7(1) of the Minors’ Contracts Amendment Act 2005 (2005 No 16).

Section 12(5): amended, on 26 April 2005, by section 7(2) of the Minors’ Contracts Amendment Act 2005 (2005 No 16).

Section 12(6): repealed, on 1 March 2002, by section 170(1) of the Public Trust Act 2001 (2001 No 100).

Section 12(7): amended, on 1 March 1989, by section 80 of the Disputes Tribunals Act 1988 (1988 No 110).

Section 12(7): amended, on 1 November 1976, by section 45 of the Small Claims Tribunals Act 1976 (1976 No 35).

Section 12(8)(b): amended, on 1 April 1980, pursuant to section 2(3) of the District Courts Amendment Act 1979 (1979 No 125).

Section 12(8)(c): substituted, on 1 April 2002, by section 337(1) of the Injury Prevention, Rehabilitation, and Compensation Act 2001 (2001 No 49).

Section 12(8)(c): amended, on 1 April 2011, by section 40 of the Employment Relations Amendment Act 2010 (2010 No 125).

Section 12(8)(c): amended, on 3 March 2010, pursuant to section 5(1)(b) of the Accident Compensation Amendment Act 2010 (2010 No 1).

Section 12(8)(d): added, on 1 April 2011, by section 40 of the Employment Relations Amendment Act 2010 (2010 No 125).

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 of this Act or under section 35 of the Statutes Amendment Act 1945 or in respect of a minor under section 66 of the Public Trust Office Act 1957 or Part 9A of the Protection of Personal and Property Rights Act 1988, whether or not the order has been varied under this section, in so far as the order relates to the payment, investment, or application of money held on trust or the income therefrom.

(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, on 1 March 2002, by section 170(1) of the Public Trust Act 2001 (2001 No 100).

14 Jurisdiction of District Courts

(1)

A District Court shall have jurisdiction to exercise any of the powers conferred by any of the provisions of sections 5 to 7 in any case where—

(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 or subsection (2) of section 6) properly before the court; or

(b)

the value of the consideration for the promise or act of any minor under the contract is not more than $200,000; or

(c)

the parties agree, in accordance with section 37 of the District Courts Act 1947, that a District Court shall have jurisdiction to hear and determine the application.

(2)

For the purposes of section 43 of the District Courts Act 1947, an application made to a District Court pursuant to subsection (2) of section 5 or subsection (2) of section 6 shall be deemed to be an action.

Section 14 heading: amended, on 1 April 1980, pursuant to section 18(2) of the District Courts Amendment Act 1979 (1979 No 125).

Section 14(1): amended, on 1 April 1980, pursuant to section 18(2) of the District Courts Amendment Act 1979 (1979 No 125).

Section 14(1)(b): amended, on 1 July 1992, by section 19(1) of the District Courts Amendment Act 1991 (1991 No 61).

Section 14(1)(c): amended, on 1 April 1980, pursuant to section 2(3) of the District Courts Amendment Act 1979 (1979 No 125).

Section 14(1)(c): amended, on 1 April 1980, pursuant to section 18(2) of the District Courts Amendment Act 1979 (1979 No 125).

Section 14(2): amended, on 1 April 1980, pursuant to section 2(3) of the District Courts Amendment Act 1979 (1979 No 125).

Section 14(2): amended, on 1 April 1980, pursuant to section 18(2) of the District Courts Amendment Act 1979 (1979 No 125).

14A Jurisdiction of Disputes Tribunals

(1)

A Disputes Tribunal established under the Disputes Tribunals Act 1988 shall have jurisdiction to exercise the powers conferred by any of the provisions of sections 5 to 7 in any case where—

(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 a Disputes Tribunal under section 7 shall not—

(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 in value in any person:

(d)

direct the transfer or assignment or delivery of possession of any such property—

and an order of a Tribunal that exceeds any such restriction shall be entirely of no effect.

(3)

Where, in respect of any proceedings properly before a Disputes Tribunal, the jurisdiction of the Tribunal has been extended under an agreement made pursuant to section 13 of the Disputes Tribunals Act 1988, subsections (1) and (2) shall be read as if every reference in those subsections to $15,000 were a reference to $20,000.

Section 14A: substituted, on 1 March 1989, by section 81 of the Disputes Tribunals Act 1988 (1988 No 110).

Section 14A(1)(b): amended, on 1 August 2009, by section 8 of the Disputes Tribunals Amendment Act 2009 (2009 No 22).

Section 14A(2)(a): amended, on 1 August 2009, by section 8 of the Disputes Tribunals Amendment Act 2009 (2009 No 22).

Section 14A(2)(b): amended, on 1 August 2009, by section 8 of the Disputes Tribunals Amendment Act 2009 (2009 No 22).

Section 14A(2)(c): amended, on 1 August 2009, by section 8 of the Disputes Tribunals Amendment Act 2009 (2009 No 22).

Section 14A(3): amended, on 1 August 2009, by section 8 of the Disputes Tribunals Amendment Act 2009 (2009 No 22).

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 or section 6 shall apply to any such contract.

(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 or subsection (2) of section 6 or 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 or subsection (2) from having effect according to its tenor.

(2)

Every agreement entered into by a minor who is or has been married, in a civil union, or in a de facto relationship whereby a trust is extinguished or the terms of a trust are varied shall have effect as if the minor were of full age if, before the agreement is entered into by the minor, it is approved under this subsection by a District Court.

(3)

An application to a District Court under subsection (2) may be made by the minor or any other person who will be a party to the proposed agreement, or by the trustee or trustees of the trust.

(4)

Subsections (3) to (5) of section 9, with any necessary modifications, shall apply to applications under this section.

Section 16: substituted, on 8 November 1974, by section 3(1) of the Minors’ Contracts Amendment Act 1974 (1974 No 107).

Section 16(2): amended, on 26 April 2005, by section 8 of the Minors’ Contracts Amendment Act 2005 (2005 No 16).

Section 16(2): amended, on 1 April 1980, pursuant to section 18(2) of the District Courts Amendment Act 1979 (1979 No 125).

Section 14(3): amended, on 1 April 1980, pursuant to section 18(2) of the District Courts Amendment Act 1979 (1979 No 125).

17 Insurances by minors and dealings by minors with policies

[Repealed]

Section 17: repealed, on 1 April 1986, by section 11(e) of the Insurance Law Reform Act 1985 (1985 No 117).

18 Consequential amendments

The enactments specified in Schedule 1 are hereby amended in the manner indicated in that schedule.

19 Repeals and revocation

(1)

The enactments specified in Schedule 2 are hereby repealed.

(2)

Amendment(s) incorporated in the rules.