Last updated 9 July 2024

Queensland law does not prohibit children from entering into contracts. Children regularly enter into contracts in the course of daily life, for example if they purchase goods from a store. Contracts do not need to be in writing, but it is best practice if contracts are written down.

However, contracts made by children will not be legally binding and cannot be enforced against the child unless the child agrees to be bound by the contract after they turn 18. This means the contract is considered voidable. Children are still able to enforce the contract against the other party.

For this reason, some businesses may choose not to enter into contracts with children, such as banks, shops, gyms or mobile phone companies. A company policy not to enter into contracts with children, will not be considered age discrimination under the Anti-Discrimination Act 1991 (Qld).

Despite the general rule, there are five categories of contracts which will be legally binding on children before the turn 18, even if they don’t agree to be bound by the contract after they turn 18.

Contracts for necessaries

Contracts for things such as food, clothes, accommodation, legal advice, schooling, health care and extracurricular activities (e.g. sports or music lessons) will generally be considered to be contracts for necessaries because these are goods or services essential to maintain the child’s life. Any contracts for things that are excessive to a child’s life, such as expensive designer clothing, will not be considered a valid contract for necessaries.

Beneficial contracts for services

This category of contracts can include apprenticeship, traineeship or employment contracts. The contract must be beneficial to the child. If the contract is more detrimental to the child, it may not be enforceable.

Contracts with continuing legal obligations

Contracts to lease of land or creating a business are examples of contracts with continuing legal obligations. Even if the child does not agree to be bound by the contract after they turn 18, they will still be responsible for obligations under the contract that arose before they turned 18. At any point before a child turns 18, they are able to opt out of the contract.

For more information on contracts, see the Consumers and Contracts chapter of this handbook.