Arbitration Agreement for Minors: What You Need to Know

In recent years, arbitration agreements have become increasingly popular as a way to settle disputes without going to court. These agreements can provide a more cost-effective and efficient way to resolve conflicts, but what happens when a minor is involved? Can a minor be bound by an arbitration agreement?

The short answer is yes. Minors can be bound by arbitration agreements, but there are certain restrictions and requirements that must be met in order for the agreement to be considered valid.

First and foremost, the minor must have legal capacity to enter into a contract. In most states, this means that the minor must be at least 18 years old. However, some states have laws that allow minors to enter into certain types of contracts, such as employment contracts or contracts for necessities like food and shelter.

Assuming the minor has legal capacity, the arbitration agreement must be entered into knowingly and voluntarily. This means that the minor must understand the terms of the agreement and must not be coerced or forced into signing it. If the minor is not capable of understanding the agreement, such as in the case of a very young child, then the agreement would not be binding.

There are also certain types of disputes that may not be subject to arbitration, such as those involving child custody or child support. In these cases, the court may require that the dispute be resolved through the court system rather than through arbitration.

Finally, it’s important to note that the minor’s parent or guardian may need to sign the arbitration agreement as well. Depending on the state and the specifics of the agreement, the parent or guardian may be required to sign as a co-signer or as a representative of the minor.

In summary, while minors can be bound by arbitration agreements, there are restrictions and requirements that must be met in order for the agreement to be considered valid. If you’re considering entering into an arbitration agreement that involves a minor, it’s important to consult with an experienced attorney who can help guide you through the legal process.