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A minor is running a sole proprietorship and would like to hire delivery drivers for their business, paid piece rate. Would that be legal?

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According to this website (with content composed by the Houston Bar association), minors are allowed to enter into contracts in Texas. But, they are not enforceable by an adult that would be hired!

How old does someone have to be to enter into an enforceable contract?

A person of any age can enter into a contract, technically speaking. But Texas law holds that the contracts of a minor (that is, someone under the age of 18) are "voidable" by the minor. That means that a minor can choose to enforce an agreement they entered into with an adult, but an adult cannot enforce an agreement entered into with a minor. This rule discourages adults from entering into contracts with persons under 18 years of age.

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  • So in practice, the minor who hired a delivery driver could just not pay the salary and get away with it?
    – PMF
    Commented Aug 5 at 6:03
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    @PMF Yep, that's my first read as well, but IANAL. But I was also thinking about all those jobs that minors typically perform. They could get hired by adults, and then not do any work. at all.
    – Peter M
    Commented Aug 5 at 12:31
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    @PMF From a contractual point of view, yes. So as a delivery driver you would ask to be paid upfront or an adult guaranteeing the payment. But if the 17 year old did this intentionally, entering into a contract with the intention not to pay, that might be fraud, and a 17 year old could be guilty of fraud. If the driver is not paid because the 17 year old is just a very bad business person and can’t pay, that would be legal.
    – gnasher729
    Commented Aug 5 at 13:15
  • @gnasher729 I wonder how many people would actually know that if you have a contract with a minor, that you should get paid up front? Especially if the minor is running a business that genuinely needs the services of an adult. But I just did some digging and also encountered edge cases like the minor being emancipated (hence being awarded the rights of being an adult). Or if the minor actually does become and adult while the contract is still in play. So there are lots of additional considerations.
    – Peter M
    Commented Aug 5 at 14:19

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