Indiana law considers persons under age 18 minors and those over age 18 adults. Both minors and incompetent persons (those suffering from severe cognitive or mental disabilities) generally lack the ability to enter into an enforceable contract, including leases.
Under Indiana law, individuals who are incapacitated to the extent that they cannot care for themselves may be deemed incompetent. Through legal proceedings, a court may place such an individual under a guardian’s care. A guardian may be the caretaker of an incompetent ward’s person, his/her estate, or both. A guardian may enter into contracts on behalf of an incompetent ward. Children typically are not determined to be incompetent, but rather, are incompetent due to their status as minors. Generally, the law considers the parent of a minor to be the guardian of that child.
A contract or lease an incompetent person enters into is not void because of incompetency alone. Instead, the contract or lease is voidable, meaning that if the other party attempts to enforce the terms and conditions, the incompetent person generally can avoid his/her obligations by proving incompetency. Conversely, if the incompetent person performs all of his/her required duties, the other party to the contract or lease also must perform.
Indiana law recognizes an exception to the general rule that contracts involving incompetent persons are voidable. This exception occurs in the context of contracts for necessities. Though necessity has not been clearly defined in law, housing may be considered a necessity in some circumstances.
When dealing with an adult incompetent person, it is important to determine whether the court has appointed a guardian. A guardian can be a person, agency, or financial institution. If a guardian exists, the lease should be between the owner/operator and the guardian, acting for the ward’s benefit.
Parents are not liable for obligations imposed by a lease a minor child signs on his/her own. If an owner or operator leases property to a child, s/he should consider entering into a lease directly with the child’s parents. This protects the owner or operator if the child defaults on the lease because the child’s parents remain liable.
Parents generally are not liable for injuries or damage their children cause to persons or property. Indiana law does impose liability up to $2,500.00 for intentional harm a child causes to persons or property if the parent has custody of the child and the child resides with the parent. However, that statute is of little use with regard to a child living in an apartment unless the parent also resides in that same residence.
Keywords: teen, teenager