In today’s digital age, misinformation spreads like wildfire across social media, leading to widespread confusion. This is particularly true when it comes to understanding contracts, an area full of legal jargon and complex terms.
For young people, navigating this landscape for the first time can be especially challenging. Our Youth Legal Service team has put together some of the most common questions relating to contracts we’re asked by young people every day.
How old do I have to be to sign a contract?
You can sign a contract at any age.
However, it’s worth keeping in mind that in NSW, the law states that a person under the age of 18 can only be held legally responsible if the contract is for their benefit (such as for work or a mobile phone plan).
Please seek legal advice if you are unsure if a contract is beneficial for you.
What if I’m under 18 and the contract is not for my benefit?
If a contract exploits you, you can hold the other side accountable by making sure they follow through with their end of the contract.
However, if you do not want to continue the contract, the law allows you terminate the contract before turning 19 (if the contract was entered before you were 18). To do this, you must provide a signed notice to the other side.
When the agreement is terminated, you are not responsible for things you need to do in the future. However, you are still responsible for things that you were supposed to do before termination, such as unsettled payments.
Can my parent or guardian lock me into a contract?
Often, your parent or guardian will also be required to sign alongside you.
You are not legally responsible if the contract is not beneficial. However, a parent who also signs the contract is making a personal guarantee that they will be responsible if you do not follow the contract.
Am I able to sign up for a service online?
A contract does not need to be in writing or witnessed by another person – you can enter a contract with words or actions.
In fact, many contracts are made online for example by checking a box to accept the terms and conditions.
To avoid being exploited, you should understand the key terms of the contract including:
- What the other side is going to pay you/do for you?
- What you must pay/do for them?
- Whether you are given time to change your mind?
- How long you need to pay/do the things in the contract?
- How to get out of the contract such as how to give notice, much notice, what penalties may apply?
- What to do if a dispute arises?
When signing up for something online, you should think about whether you are able to afford the contract. Be extra careful when the deal is too good to be true, such as when you receive an expensive sign-up gift.
What should I do if I need help with a contract?
If you are unsure about a contract, you should get specific legal advice from a lawyer, who can help you read the contract and explain the main terms.
If you are struggling to follow through with a contract, lawyers also think about if you have protections under the law or whether the other side is asking you to pay a penalty which the law does not require you to pay.
Even if you are bound by a contract, lawyers and financial counsellors can help you negotiate to pay a reduced sum or sign up for a payment plan.
If you think you need help with a contract, contact our Youth Legal Service team via our webform.
Information accurate as of 28th February 2025. The information above is not legal advice. If you have a legal issue, please get specific legal advice.
