The short answer is yes. There is a legal age an individual needs to reach before they can sign contracts, and for most states it’s 18, except Mississippi (21), Nebraska, and Alabama (19). If the individual signing the contract is below this age, they’re legally considered a minor, and the contract becomes voidable.
Quick answer: In most U.S. states, you must be at least 18 to sign a legally binding contract. Contracts signed by someone under that age are generally voidable, not automatically void. That distinction matters: it means the minor, not the other party, holds the power to enforce or cancel the agreement.
In the US, there’s no upper age limit on signing a contract; a 25-year-old, 55-year-old, and 80-year-old are all adults capable of entering into legally binding contracts.
An older person with dementia or a similar cognitive condition may lack capacity, but that’s not an age issue. It’s a mental capacity question, and it only becomes relevant if there’s a specific reason to doubt someone’s ability to understand the agreement.
There is no blanket requirement for older adults to prove mental fitness before signing. On the flip side, an individual can be too young to enter into an agreement. A contract signed by a minor is generally voidable; this doesn’t mean it’s automatically void, but the minor can back out of it. The adult party, however, has to keep their end of the contract.
In the majority of the states, an individual needs to reach the age of 18 to enter into a contract. However, some states have higher age limits:
| State | Legal age to enter into a contract |
|---|---|
| Mississippi | 21 |
| Nebraska | 19 |
| Alabama | 19 |
💡Legal implication: Even though you can do business with someone from Texas at the age of 19, you can’t do that with someone in Mississippi; they are still a minor as far as contracts are concerned.
Contracts signed by minors are generally voidable. This doesn’t mean that all contracts signed by minors are automatically void, but they’re voidable.
The contract remains valid and binding on the adult party unless the minor decides to cancel or withdraw their agreement. The choice to disaffirm the contract belongs to the minor, not the adult party.
The Right to Disaffirm
This is what happens when an individual decides to cancel or reject a contract that’s voidable. A minor can disaffirm a contract in writing, verbally, or through conduct such as refusing to carry out the contracted work or returning a deposit. Typically, disaffirmance works by canceling the contract, meaning both parties go back to the way things were before entering it. So, if deposits were made, they are typically returned.
While minors in most states can disaffirm any time before reaching the age of majority and for a reasonable time after, that window closes once enough time has passed. After reaching the age of majority, the minor must act within whatever timeframe their state allows, or the contract becomes irrevocable. The specific window varies by state and contract type; an attorney can advise on how it applies to a particular situation.
The adult party cannot cancel the contract; only the minor can. They’re bound to fulfill their end of the contract unless the minor decides to disaffirm. This protection exists to prevent minors from being taken advantage of.
Yes, there are some exceptions where a contract signed by a minor holds even if the minor wants to back out.
Even if the contract was signed just weeks before the minor turned 18, at the time of signing they were still a minor, and the contract remains voidable for a reasonable time window.
However, if the minor continues to maintain the terms of the contract after turning the legal age, doesn’t disaffirm the contract, and the reasonable time window has passed, the court could ratify it.
The age of majority in Texas is 18. A minor under this age doesn’t have the legal capacity to enter into a legally binding contract. Best practice is to do due diligence on the other party’s legal capacity before entering into a contract.
For Texas businesses, this most often comes up in situations where a counterparty’s age may not be obvious:
In most cases, they are voidable, which means the contract can be legally binding unless the minor themselves chooses to cancel or reject it
Alabama and Nebraska require parties to be at least 19. Mississippi requires 21. In all other states and D.C., the standard is 18.
Yes, but the contract is voidable. The 17-year-old who is a minor can choose to walk away from the contract, and the other party can’t enforce it unless there’s a court order enforcing it in exceptional cases.
Cell phone contracts are still within the boundaries of legal contracts and require an adult to sign the contract. So, in most states, carriers require a parent or a guardian to sign.
A person’s age can affect the validity of the contract, and this could put you at a disadvantage if you unknowingly sign a contract with a minor.
Disclaimer: This article is for general informational and educational purposes only. It is not legal advice and does not create an attorney-client relationship. If you have questions about a contract’s validity in Texas, or want to make sure your agreements are structured to hold up, MCIS Law, PLLC can help. Contact us or call (346) 297-0121 for a consultation.