Is there a law about not taking clients that are under 18 years of age. because in the USA under 18 can not sign a contract, but if they are an INC. , then they can sign the contract under there corporation.

I came across a problem that has had me thinking about it for 5 days. the problem was, should I refuse sign-ups frm the under 18 market for resellers. I'm thinking of the problems recently that I see resellers offering tons of gigs for little or no money, then if they vanish whom is left holding the liabilities ( given you end up with a few accounts as the owner of the hosting company ) but if one of there accounts get's nasty and starts using a lawyer, I, the host might get hit ( don't laugh thrid party suits are common ).

Mike

I think there's some Age Discrimination Law but I'm not sure if it applies to this.

Well it seems that any contract agreed to by someone that isn't of legal age to agree to a contract would be pretty much void, so I don't see the point in offering services to under 18 without parental consent (and liability).

Your lawyer would be able to answer your questions better. I'd explain what you want to protect yourself from exactly and ask how that jives with clients who are under 18. You should be able to figure out the exact risks and weigh the ad/disadvantages.

There is no law about not being able to take money from someone under the age of 18. Malls would be out of business ;) - however, as you said, there are restrictions on liability and ability to enter into contracts.

I have a question... if they are under 18 how are they paying for your services? You said they signed up via an online form... did they use a Credit Card? Whose?

You can't get a credit card if you're under 18. I wouldn't allow minors to have accounts on my servers simply because I couldn't legally enforce the AUP because they couldn't legally sign/agree to a contract.

People under 18 have credit cards nowadays, Beley. It is under their parents account, but it has their name on it and such.

It depends, im in the UK studying contract law and minors can get out of some contracts, unless:

1. There is a guarantor, get a parent to sign and say that they will pay the debt if the child defaults

2. The contract provides a benefit to the chid, if they can see a benefit in the contract then the child may not be able to get out of teh contract

3. The item is a necessary, does the minor really need it? If it can be proved that they do then they have to pay up.


The latter two can be pretty unreliable so the best idea is to get someone over 18 tosay that they will pay up if the minor defaults and then they contract can be enforced against them. Any other problems can also hold the guarantor responsible

Originally posted by beley
I have a question... if they are under 18 how are they paying for your services? You said they signed up via an online form... did they use a Credit Card? Whose?

You can't get a credit card if you're under 18. I wouldn't allow minors to have accounts on my servers simply because I couldn't legally enforce the AUP because they couldn't legally sign/agree to a contract.

well I don't know about anywhere else, but in the USA you can pull a debit card visa at the age of 14.

but more to the point.

did a quick informal survey, found out about 12 to 20% of the reseller market is under 22 years of age. with a percentage greater than 50% being under 18. interesting numbers ( i have the failure/abandon rates also but not posting that ). as a host I have no interest in getting someones account due to failure ( just the bad blood that there must be gruesome ). but what I'm more worried is the revenue stream that is lost due to there failures. and my rights to collect for services rendered.

Mike

A minor cannot open a checking or credit account in their name... it must be in the name of a parent or guardian. Therefore, the person legally responsible for any debts they incur using that card/account is the guarantor of the account... their guardian.

Just because their name is on a card does not mean that they are the account holder.

The parents may be responsible for upholding the contract if the minor uses their card (with permission) to sign up for the account... since they have signed as the guarantor of the account. This is an interesting issue... may want to ask an attorney.

It's worth noting that minors enter into binding contracts every day. When you buy something from a store, you enter into a contract; when you purchase something from a vending machine, you enter into a contract.

As I understand it -- and keep in mind that this is a very messy area -- the general pattern is that long term contracts -- things like loans, land deals, marriage contracts, etc -- are unenforceable, while the short term exchange of good or service for money is enforceable once the product or service has been provided, with the proviso that the contract must have been reasonable.

Based on this, I would venture that a contract between a web hosting company and a minor by which the minor paid a monthly fee in exchange for web hosting would probably be valid; but if the contract stipulated a minimum duration, penalty fees upon early cancellation, or a requirement of notice prior to cancellation, then those terms would likely be held to be unenforceable.

As a side point, the issue of credit cards is immaterial; a credit card will only be issued to a minor if a non-minor agrees to act as guarantor, in which case the credit agreement is simply binding against a different person.

As always, I am not a lawyer, this does not constitute legal advice, consult a qualified attorney in your jurisdiction, blah blah blah.

<edit>Another example of an unenforceable clause would be one which provided for a financial penalty for AUP violations; on the other hand, a clause which stipulated that an account would be cancelled upon AUP violation would be perfectly fine.</edit>

Originally posted by beley
A minor cannot open a checking or credit account in their name... it must be in the name of a parent or guardian. Therefore, the person legally responsible for any debts they incur using that card/account is the guarantor of the account... their guardian.

Just because their name is on a card does not mean that they are the account holder.

The parents may be responsible for upholding the contract if the minor uses their card (with permission) to sign up for the account... since they have signed as the guarantor of the account. This is an interesting issue... may want to ask an attorney.

Don't know where you are from, but I've had a checking account since I was 14 without having a guardian. My brokerage account required a guardian and a confrimation of the trade from my guardian

Mike

Originally posted by cperciva
It's worth noting that minors enter into binding contracts every day. When you buy something from a store, you enter into a contract; when you purchase something from a vending machine, you enter into a contract.

As I understand it -- and keep in mind that this is a very messy area -- the general pattern is that long term contracts -- things like loans, land deals, marriage contracts, etc -- are unenforceable, while the short term exchange of good or service for money is enforceable once the product or service has been provided, with the proviso that the contract must have been reasonable.

Based on this, I would venture that a contract between a web hosting company and a minor by which the minor paid a monthly fee in exchange for web hosting would probably be valid; but if the contract stipulated a minimum duration, penalty fees upon early cancellation, or a requirement of notice prior to cancellation, then those terms would likely be held to be unenforceable.

<edit>Another example of an unenforceable clause would be one which provided for a financial penalty for AUP violations; on the other hand, a clause which stipulated that an account would be cancelled upon AUP violation would be perfectly fine.</edit>



Here is a Loophole (USA), Don't know about Britain and how it would be done.

minor's can Incorporate a business, then sign off as the officer of that business.

But you make alot of valid points, just got to think about the risks associated with that.

Mike

Read this:

FUNDAMENTALS OF CONTRACT LAW:
http://consumer.pub.findlaw.com/newcontent/consumerlaw/chp2.html

specifically, CAPACITY TO CONTRACT:
http://consumer.pub.findlaw.com/newcontent/consumerlaw/chp2_a.html


And this:
http://www.muw.edu/~tconaway/contracts/read/capacity.htm

Originally posted by ADEhost




Here is a Loophole (USA), Don't know about Britain and how it would be done.

minor's can Incorporate a business, then sign off as the officer of that business.

But you make alot of valid points, just got to think about the risks associated with that.

Mike

Are you sure about that, can you provide any evidence? I'm not trying to contradict you, but I was under the impression that minors could not incorporate a business.

Originally posted by jw


Are you sure about that, can you provide any evidence? I'm not trying to contradict you, but I was under the impression that minors could not incorporate a business.

well it's not evidence but you can take my word if you so desire; state of NJ let me incorporate my first business when I was 14,
then I went into the bank and opened up an account,
then I wrote checksand signed them.
got a bank card for atm's and was offered a business visa card ( which thank god I did not accept because I was scared of having it lost or stolen.

mike

Originally posted by DesElms
Read this:

FUNDAMENTALS OF CONTRACT LAW:
http://consumer.pub.findlaw.com/newcontent/consumerlaw/chp2.html

specifically, CAPACITY TO CONTRACT:
http://consumer.pub.findlaw.com/newcontent/consumerlaw/chp2_a.html


And this:
http://www.muw.edu/~tconaway/contracts/read/capacity.htm

thank you, I should have checked with findlaw first before posting my question. but there was an important point in the text, e-mail of a contract might not be valid seems like there has be to more to just the e-mail

mike

Hi!
Here's my opinion.
I have seen many bright kids wanting to start off with something and they do very well..

I feel we must let them start with whatever they want. Only condition should be that the agreement must be signed by the parents... This way legally you are safe. You get you money too... Also the kids are able to do what they want to...
We must however not encourage kids to do illegal activities..
They are the future and unlike us they prefer to computers to outdoor games.. (we never had a choice... )

Have a great day :)

regards
amar