Minors' Contracts Act 1969: Amendments and Interpretation, Exams of Law

Download Minors' Contracts Act 1969: Amendments and Interpretation and more Exams Law in PDF only on Docsity! Reprint as at 1 April 2011 Minors’ Contracts Act 1969 Public Act 1969 No 41 Date of assent 29 September 1969 References in this Act to a “Magistrate”, the “Magistrate’s Court”, or the “Magistrates’ Courts Act 1947” were amended to read as references to a “District Court Judge”, the “District Court”, and the “District Courts Act 1947”, respectively. Contents Page Title 2 1 Short Title and commencement 2 2 Interpretation 2 3 Act to bind the Crown 3 Contractual capacity of minors 4 Married minors [Repealed] 3 5 Certain contracts concerning life insurance, and contracts of service 3 6 Contracts of minors 5 7 Compensation or restitution 6 8 Applications under section 5 or section 6 7 Note Changes authorised by section 17C of the Acts and Regulations Publication Act 1989 have been made in this eprint. A general outline of these changes is set out in the notes at the end of this eprint, together with other explanatory material about this eprint. This Act is administered in the Ministry of Justice. 1 Minors’ Contracts Act 1969 Reprinted as at 1 April 2011 9 Minor may enter into contract with approval of District Court 7 Miscellaneous provisions 10 Guarantees and indemnities 8 11 Contracts to marry [Repealed] 9 12 Settlement of claims by minors 9 13 Variation of certain orders made under section 12 12 14 Jurisdiction of District Courts 13 14A Jurisdiction of Disputes Tribunals 13 15 Act to be a code 14 16 Agreements relating to trusts 15 17 Insurances by minors and dealings by minors with policies [Repealed] 16 18 Consequential amendments 16 19 Repeals and revocation 16 Schedule 1 17 Enactments amended Schedule 2 17 Enactments repealed AnAct to restate and reform the law relating tominors’ contracts 1 Short Title and commencement (1) This Act may be cited as the Minors’ Contracts Act 1969. (2) This Act shall come into force on 1 January 1970. 2 Interpretation (1) In this Act, unless the context otherwise requires,— Courtmeans the High Court or a District Court that has juris- diction under section 14 or a Disputes Tribunal that has juris- diction under section 14A Court: this definition was amended, as from 1 November 1976, by section 45 Small Claims Tribunals Act 1976 (1976 No 35). Court: this definition was substituted, as from 1 March 1988, by section 79 Disputes Tribunals Act 1988 (1988 No 110). 2 Reprinted as at 1 April 2011 Minors’ Contracts Act 1969 s 6 from 1 July 1992, by section 14(1) Industry Training Act 1992 (1992 No 55). See sections 14 to 18 of that Act for transitional provisions. In subsection (4)(c) the reference to “section 51 of the Defence Act 1971” was substituted for a reference to “section 10A New Zealand Army Act 1950” as from 1 April 1972, pursuant to section 89(2) Defence Act 1971 (1971 No 52). This subsection was amended, as from 8 November 1974, by section 2 Minors’ Contracts Amendment Act 1974 (1974 No 107) by substituting the expression “section 222A” for the expression “section 22A”. In subsection (4)(c) the reference to “section 95 of the Defence Act 1990” was substituted for a reference to “section 51 of the Defence Act 1971”, as from 1 April 1990, pursuant to section 105(2) Defence Act 1990 (1990 No 28). 6 Contracts of minors (1) Subject to the provisions of this section, every contract (other than a contract to which paragraph (b) or paragraph (c) of sub- section 5(1) applies) entered into by a minor is unenforceable against the minor but otherwise has effect as if the minor were of full age. (2) The Court may, in the course of any proceedings or on appli- cation made for the purpose, inquire into the fairness and rea- sonableness of any contract to which subsection (1) applies at the time the contract was entered into and— (a) if it finds that any such contract was fair and reasonable at that time it shall not be obliged to make any order but it may in its discretion— (i) enforce the contract against the minor: (ii) declare that the contract is binding on the minor, whether in whole or in part: (iii) make such order entitling the other parties to the contract, on such conditions as the Court thinks just, to cancel the contract: (iv) make such order as to compensation or restitution of property under section 7 as it thinks just; and (b) if it finds that any such contract was not fair and rea- sonable at that time it shall not be obliged to make any order but it may in its discretion— (i) cancel the contract: (ii) make such order entitling the minor, on such con- ditions as the Court thinks just, to cancel the con- tract: 5 s 7 Minors’ Contracts Act 1969 Reprinted as at 1 April 2011 (iii) make such order as to compensation or restitution of property under section 7 as it thinks just. (3) In exercising its discretion under subsection (2) the Court shall have regard to— (a) the circumstances surrounding the making of the con- tract: (b) the subject-matter and nature of the contract: (c) in the case of a contract relating to property, the nature and the value of the property: (d) the age and the means (if any) of the minor: (e) all other relevant circumstances. (4) Nothing in this section shall apply to— (a) any contract approved by a District Court pursuant to section 9; or (b) the compromise or settlement of any claim for money or damages made by or on behalf of any minor (whether alone or in conjunction with any other person). (5) Nothing in this section shall limit or affect section 20 of the Trustee Act 1956. The heading to section 6 was substituted, as from 26 April 2005, by section 6(1) Minors’ Contracts Amendment Act 2005 (2005 No 16). Subsection (1) was substituted, as from 26 April 2005, by section 6(2) Minors’ Contracts Amendment Act 2005 (2005 No 16). Subsection (2) was substituted, as from 8 December 1971, by section 2 Minors’ Contracts Amendment Act 1971 (1971 No 111). 7 Compensation or restitution (1) Where the Court exercises any of the powers conferred on it by subsection (2) of section 5 or where it may exercise any of the powers conferred on it by subsection (2) of section 6 (whether or not it exercises any of those powers), the Court may grant to— (a) any party to the contract; or (b) a guarantor or indemnifier under a contract of guarantee or indemnity relating to a contract to which subsection (1) of section 5 or subsection (1) of section 6 applies; or (c) any person claiming through or under or on behalf of any such party, guarantor, or indemnifier, 6 Reprinted as at 1 April 2011 Minors’ Contracts Act 1969 s 9 such relief by way of compensation or restitution of property as the Court in its discretion thinks just. (2) The Court may by any order made pursuant to subsection (1) vest the whole or any part of any property that was the subject of, or the whole or any part of the consideration for, the con- tract in any party to the proceedings or may direct any such party to transfer or assign any such property to any other party to the proceedings. 8 Applications under section 5 or section 6 (1) An application under subsection (2) of section 5 or subsection (2) of section 6 may be made by— (a) any person to whom the Court may grant relief pursuant to section 7; or (b) any other person where it is material for that person to know whether the Court will exercise the powers granted to it by the subsection. (2) Any ordermade under subsection (2) of section 5 or subsection (2) of section 6 or pursuant to section 7, or any provision of any such order, may be made upon and subject to such terms and conditions as the Court thinks fit. 9 Minor may enter into contract with approval of District Court (1) Every contract entered into by a minor shall have effect as if the minor were of full age if, before the contract is entered into by the minor, it is approved under this section by a District Court. (2) An application to a District Court under this section may be made— (a) by the minor or any other person who will be a party to the proposed contract; or (b) by a guardian of the minor. (3) The Court may, in its discretion, refer any such application to a guardian of the minor, or, where the Court deems it necessary for the purposes of the application, to a solicitor nominated by the Court, or to Public Trust or the Maori Trustee, or to any other person, and may make such order as it thinks fit for the 7 s 12 Minors’ Contracts Act 1969 Reprinted as at 1 April 2011 a minor in any cause or matter or of any money to which a minor is entitled under an agreement, compromise, or settle- ment approved under subsection (1) shall be held on trust for the minor under this subsection by Public Trust or any other person then, except so far as the Court directs any immediate payment therefrom or otherwise orders, and subject to any di- rections or conditions given or imposed by the Court— (a) the amount shall be invested and held by the trustee upon trust— (i) to make such payment (if any) to the minor out of the income and capital of the amount as the Court may specify; and (ii) to apply the income and capital of the amount or so much thereof as the trustee from time to time thinks fit for or towards the maintenance or edu- cation (including past maintenance or education) or the advancement or benefit of the minor: (b) the minor shall have no power, either by himself or in conjunction with any other person or persons, to termin- ate the trusts uponwhich the amount is held or tomodify or extinguish those trusts: (c) the interest of the minor in the income and capital of the amount shall not, while it remains in the hands of the trustee, be alienated, or pass by bankruptcy, or be liable to be seized, sold, attached, or taken in execution by process of law. (5) Upon any minor attaining the age of 18 years or marrying or entering into a civil union or a de facto relationship under that age while any amount is held on trust for his benefit under subsection (4), the balance of that amount and of the income therefrom remaining in the hands of the trustee shall be paid to the minor except in so far as the Court may have ordered before the payment is made that the whole or any part of that amount shall continue to be held on trust under that subsection: Provided that where the trustee has made an application or received notice that an application has been made to the Court for such an order he shall not make any payment under this subsection until the application has been disposed of. 10 Reprinted as at 1 April 2011 Minors’ Contracts Act 1969 s 12 (6) [Repealed] (7) For the purposes of this section the expression Court of com- petent jurisdiction means a Court (other than a Disputes Tri- bunal) in which proceedings could be taken to enforce the claim or, in the case of a claim that could not be the subject of proceedings in New Zealand, a Court in which proceedings could be taken to enforce a similar claim in New Zealand. (8) Nothing in this section shall limit or affect— (a) the Deaths by Accidents Compensation Act 1952; or (b) section 50 of the District Courts Act 1947; or (c) the Injury Prevention, Rehabilitation, and Compensation Act 2001; or (d) section 149(3A) of the Employment Relations Act 2000. Compare: 1945 No 40 s 35; 1957 No 36 s 66 Subsection (1)(a) was substituted, as from 27 November 1970, by section 3(1) Minors’ Contracts Amendment Act 1970 (1970 No 88). Subsection (1)(b) was amended, as from 27 November 1970, by section 3(2) Minors’ Contracts Amendment Act 1970 (1970 No 88) by substituting the words “compromised or settled in accordance with” for the words “the subject of an agreement approved under”. Subsection (4) was amended, as from 1 January 1970, by section 3(3) Minors’ Contracts Amendment Act 1970 (1970 No 88) by substituting the words “any money or damages awarded to a minor in any cause or matter of any money to which a minor is entitled under subsection (1) of this section” for the words “the money to which the minor is entitled under the agreement, compromise, or the settlement”. Subsection (4) was amended, as from 1 March 2002, by section 170(1) Public Trust Act 2001 (2001 No 100) by substituting the words “Public Trust” for the words “the Public Trustee”. See clause 2 Public Trust Act Commencement Order 2002 (SR 2002/11). Subsection (5) was amended, as from 1 January 1971, by section 6 Age of Majority Act 1970 (1970 No 137) by substituting the word “twenty” for the word “twenty-one”. Subsection (5) was amended, as from 26 April 2005, by section 7(1) Minors’ Contracts Amendment Act 2005 (2005 No 16) by substituting the expression “18” for the expression “20”. Subsection (5) was amended, as from 26 April 2005, by section 7(2) Minors’ Contracts Amendment Act 2005 (2005 No 16) by inserting the words “or entering into a civil union or a de facto relationship” after the word “marrying”. Subsection (6) was amended, as from 22October 1972, by section 2(2)(a) Public Trust Office Amendment Act 1972 (1972 No 95) by substituting the words “subsection (7)” for the words “subsection (3)”. 11 s 13 Minors’ Contracts Act 1969 Reprinted as at 1 April 2011 Subsection (6) was repealed, as from 1 March 2002, by section 170(1) Public Trust Act 2001 (2001 No 100). See clause 2 Public Trust Act Commencement Order 2002 (SR 2002/11). Subsection (7) was amended, as from 1 November 1976, by section 45 Small Claims Tribunals Act 1976 (1976 No 35) by inserting the words “(other than a Small Claims Tribunal)”. It was further amended as from 1 March 1989, by section 80 Disputes Tribunals Act 1988 (1988 No 110) by substituting the word “Disputes” for the words “Small Claims”. The Workers’ Compensation Act 1956 was repealed, as from 1 July 1992, by section 179(1) Accident and Rehabilitation Compensation Insurance Act 1992 (1992 No 13). That Act was in turn repealed, as from 1 July 1999, by section 417(1) Accident Insurance Act 1998 (1998 No 14). Section 12(8)(c): substituted, on 1 April 2002, by section 337(1) of the Injury Prevention, Rehabilitation, and Compensation Act 2001 (2001 No 49). Section 12(8)(c): amended, on 1 April 2011, by section 40 of the Employment Relations Amendment Act 2010 (2010 No 125). Section 12(8)(d): added, on 1 April 2011, by section 40 of the Employment Relations Amendment Act 2010 (2010 No 125). 13 Variation of certain orders made under section 12 (1) The Court may at any time vary any order made by it under section 12 or under section 35 of the Statutes Amendment Act 1945 or in respect of a minor under section 66 of the Public Trust Office Act 1957 or Part 9A of the Protection of Personal and Property Rights Act 1988, whether or not the order has been varied under this section, in so far as the order relates to the payment, investment, or application of money held on trust or the income therefrom. (2) Any order under this section may be made by the Court of its own motion or on an application made by: (a) the minor; or (b) the trustee; or (c) any other person who adduces proof of circumstances which in the opinion of the Court make it proper that he should make the application. Subsection (1) was amended, as from 1 March 2002, by section 170(1) Public Trust Act 2001 (2001 No 100) by inserting the words “or Part 9A of the Protection of Personal and Property Rights Act 1988” after the words “section 66 of the Public Trust Office Act 1957”. See clause 2 Public Trust Act Commencement Order 2002 (SR 2002/11). 12 Reprinted as at 1 April 2011 Minors’ Contracts Act 1969 s 16 (2) This Act shall apply only to contracts made, compromises and settlements agreed to, and discharges and receipts given, after the commencement of this Act. (3) Nothing in this Act shall limit or affect any provision of any other enactment whereby a contract is made binding on a minor and nothing in section 5 or section 6 shall apply to any such contract. (4) Nothing in this Act shall limit or affect the rule of lawwhereby aminor is not liable in tort for procuring a contract bymeans of fraudulent representations as to his own age or any other mat- ter, but the Court shall take any such representations into ac- count in deciding whether to exercise any of its powers under subsection (2) of section 5 or subsection (2) of section 6 or section 7. 16 Agreements relating to trusts (1) Nothing in this Act shall entitle— (a) a trustee to pay money or deliver property to a minor otherwise than in accordance with the terms of the trust: (b) a minor to enter into an agreement whereby a trust is extinguished or the terms of a trust are varied: provided that nothing in this subsection shall prevent any contract approved pursuant to section 9 or subsec- tion (2) from having effect according to its tenor. (2) Every agreement entered into by a minor who is or has been married, in a civil union, or in a de facto relationshipwhereby a trust is extinguished or the terms of a trust are varied shall have effect as if theminor were of full age if, before the agreement is entered into by the minor, it is approved under this subsection by a District Court. (3) An application to a District Court under subsection (2) may be made by the minor or any other person who will be a party to the proposed agreement, or by the trustee or trustees of the trust. (4) Subsections (3) to (5) of section 9, with any necessary modi- fications, shall apply to applications under this section. Section 16 was substituted, as from 8 November 1977, by section 3(1) Minors’ Contracts Amendment Act 1974 (1974 No 107). 15 s 17 Minors’ Contracts Act 1969 Reprinted as at 1 April 2011 The words “District Court” referred to in subsections (2) and (3) were substituted, as from 1 April 1980, for the words “Magistrate’s Court” pursuant to section 18 District Courts Amendment Act 1979 (1979 No 125). Subsection (2) was amended, as from 26 April 2005, by section 8 Minors’ Contracts Amendment Act 2005 (2005 No 16) by inserting the words “, in a civil union, or in a de facto relationship” after the word “married”. 17 Insurances by minors and dealings by minors with policies [Repealed] Section 17 was repealed, as from 1 April 1986, by section 11(e) Insurance Law Reform Act 1985 (1985 No 117). See, as from 1 April 1986, sections 66A to 67E Life Insurance Act 1908, as inserted by section 9 Insurance Law Reform Act 1985 (1985 No 117). 18 Consequential amendments The enactments specified in Schedule 1 are hereby amended in the manner indicated in that Schedule. 19 Repeals and revocation (1) The enactments specified in Schedule 2 are hereby repealed. (2) Rule 59 of the District Courts Rules 1948 is hereby revoked. 16 Reprinted as at 1 April 2011 Minors’ Contracts Act 1969 Schedule 2 Schedule 1 s 18 Enactments amended District Courts Act 1947 (1947 No 16) (1957 Reprint, Vol 8, p 647) Amendment(s) incorporated in the Act(s). Sale of Goods Act 1908 (1908 No 168) (1957 Reprint, Vol 13, p 615) Amendment(s) incorporated in the Act(s). This Schedule was amended, as from 20 October 1972 by section 2(2)(b) Public Trust Office Amendment Act 1972 (1972 No 95) by omitting so much of the Schedule as relates to the Public Trust Office Act 1957. It was further amended, as from 1 February 1977, by section 57(1) Matrimonial Property Act 1976 (1976 No 166) by omitting so much of the Schedule as relates to the Property Law Act 1952. Schedule 2 s 19 Enactments repealed Finance Act (No 2) 1948 (1948 No 78) (1957 Reprint, Vol 13, pp 248, 266) Amendment(s) incorporated in the Act(s). Statutes Amendment Act 1945 (1945 No 40) (1957 Reprint, Vol 6, pp 597, 614) Amendment(s) incorporated in the Act(s). Statutes Amendment Act 1951 (1951 No 81) (1957 Reprint, Vol 6, pp 596, 615) Amendment(s) incorporated in the Act(s). This Schedule was amended, as from 19 December 1989, by section 2(i) Infants Act Repeal Act 1989 (1989 No 145) by omitting so much of the Schedule as relates to the Infants Act 1908. 17