Written by attorneys · grounded in primary & secondary sources — see below
2 senses
1
in contract law
A rule permitting a minor to disaffirm a contract and recover any consideration paid even after receiving and consuming benefits that cannot be returned. The rule requires only return of what the minor still possesses or identifiable proceeds. It prevents enforcement against the minor despite partial performance by the adult party.
Sense 1
1
in contract law
A rule permitting a minor to disaffirm a contract and recover any consideration paid even after receiving and consuming benefits that cannot be returned. The rule requires only return of what the minor still possesses or identifiable proceeds. It prevents enforcement against the minor despite partial performance by the adult party.
Examples1
Minor Seeks Full Refund
Marcus Mitchell a seventeen-year-old purchased a used truck from Meridian Motors for cash. After three months of use the truck was wrecked beyond repair. Mitchell disaffirmed the contract and demanded return of the full purchase price. The minority doctrine permits recovery of the price even though Mitchell cannot return the truck or its value.
Sense 2
2
in property law
A rule allocating risk of loss in an executory contract for the sale of land under which the seller continues to bear the risk until delivery of the deed. The buyer may rescind or obtain a price reduction if improvements are destroyed before closing. The rule treats retention of legal title and possession by the seller as decisive for risk allocation.
Examples1
Flood Damage Before Closing
Central Physicians Partnership signed a contract to buy a medical office building from Terry with closing set sixty days later. The contract contained no risk-of-loss clause. Two weeks after signing a burst pipe destroyed specialized imaging equipment. Under the minority doctrine the partnership may rescind or demand a price abatement because risk remained with Terry until deed delivery.
A rule allocating risk of loss in an executory contract for the sale of land under which the seller continues to bear the risk until delivery of the deed. The buyer may rescind or obtain a price reduction if improvements are destroyed before closing. The rule treats retention of legal title and possession by the seller as decisive for risk allocation.
Each sense below has its own examples, sources, and questions.
Dodson v. Shrader824 S.W.2d 545 (Tenn. 1992)
Frequently Asked2
How does the minority doctrine differ from the majority rule in minors' contracts?+
The minority doctrine allows a minor to disaffirm and recover the full price paid without deducting for benefits received or use of the goods. The majority approach in many states now permits deduction for the minor's use or requires restitution to the extent of benefit received.
Does the minority doctrine in contracts require the minor to make restitution?+
Under the traditional minority doctrine the minor need return only what remains in the minor's possession or any identifiable proceeds. No restitution is required for services consumed or goods that have lost value.
2
When does the minority risk-of-loss rule apply in real estate contracts?+
The minority rule applies when the contract is silent on risk allocation and the jurisdiction has not adopted the majority equitable-conversion approach. Risk stays with the seller until deed delivery so the buyer may avoid the contract or seek abatement after destruction of improvements.
What policy supports the minority risk-of-loss rule?+
The minority rule protects the buyer who has not yet received possession or legal title. It places the loss on the party still holding title and control and who is often better positioned to maintain insurance.
16 Kan. App. 2d 811, 829 P.2d 916Contracts
…57 U. Chi. L. Rev. at 1178. We are not persuaded that the lost profits view under Allied should be embraced. It is a minority rule that has received only nominal support. We believe the majority rule or the market damages remedy as contained in K.S.A. 84-2-713 is more reasoned and should be followed as the preferred…
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