How to Do Business with a Minor in California

In California, contracts with minors require judicial approval to prevent disaffirmation and must comply with the Coogan Law to protect earnings, per legal experts. A contract with a minor is a little more complicated than a contract with an adult.
Make sure your contract is the kind that can be court-approved

Minors aren’t legally able to enter into contracts because they’re too young to understand the importance of a contract. But they can enter into contracts if their parent or legal guardian agrees. If the parent or legal guardian signs the contract, they’re bound by it, even if it’s not court-approved.

But if the parent or guardian doesn’t sign it, you need court approval. The purpose of getting a court to approve your contract with a minor is so the minor can’t “disaffirm” it, that is, walk away from it without needing to honor it.

The first kind of minor’s contract that a court can approve employs a minor to perform artistic or creative services, such as an actor/actress, dancer, musician, comedian, singer, stunt-person, voice-over artist, songwriter, musical producer or arranger, writer, director, producer, production executive, choreographer, composer, conductor, or designer.

The second kind of contract that a court can approve is one in which a minor agrees to buy, sell, or license some literary, musical, or dramatic property, or use someone’s likeness, voice, performance, or life story in a film, TV, sound recordings, or on the stage.

The third type of contract a court can approve is one that hires a minor to play a sport. These first three kinds of contracts are provided for in Family Code section 6750.

The fourth type of contract a court can approve is when a licensed talent agency seeks to sign a minor, as covered by Labor Code section 1700.37.

Your contract should be signed by the minor and their parent (or guardian)

Make sure your contract is signed by the minor and either a parent or, if they have one, a legal guardian.

Your court petition must include “Coogan” provisions.

This law, named after Jackie Coogan, was written to protect a minor from their parents stealing their money, as Coogan’s parents did. It requires whoever hires the minor to set aside 15% of the minor’s gross earnings, keep it in trust in an account or other savings plan, and preserve it for the minor’s benefit.

Make sure the parent signs! If there’s a breach, you can sue the parent for the minor’s breach. File your petition and Proposed Order with the Court.

In Los Angeles County, you also need a Civil Case Cover Sheet specifying that you are seeking court approval of a minor’s contract, and you must pay the Petition filing fee to the court.

Attach a copy of the contract you want approved to your Petition.

Your Proposed Order should track the language in your Petition, so the judge will order just what you’ve asked for.

Expect the process to take some time, so plan if you need court approval by a deadline.

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