What is the legal standing of minors in contract formation?

Minors have a unique legal standing when it comes to contract formation due to their age and presumed lack of capacity to fully understand the implications of their agreements. Generally, minors—typically defined as individuals under the age of 18—are not legally bound by contracts they enter into, with the exception of contracts for necessaries, which are goods and services essential for their well-being, such as food, clothing, and shelter.

This principle is designed to protect minors from being exploited or taken advantage of by entering into agreements that they may not fully comprehend or that may not be in their best interest. As a result, contracts made by minors are typically voidable at the minor's discretion until they reach the age of majority or ratify the contract when they turn 18.

While some jurisdictions may allow minors to enter contracts with parental consent, this is not universally applicable. Therefore, the correct characterization of minors' capacity to contract is that they are generally not bound by contracts except in the case of necessaries. This legal framework aims to strike a balance between granting minors some ability to engage in contractual relationships while also providing them protection from the potential pitfalls of contracting at a young age.