Question

John Tonelli was an exceptionally talented young hockey player who, in 1973 at the age of 16, entered into a two-year contract with the Toronto Marlboros Major Junior A hockey club, a team in the Ontario Major Junior A Hockey League. The league had an agreement with the National Hockey League (NHL) that prevented the drafting of underage players and that called for the payment of certain fees once a player was drafted at the end of his junior career. However, a similar agreement could not be be reached with the World Hockey Association (WHA). John -- like all other junior hockey players of his time -- was forced to sign a new contract as a condition of continuing to play in the junior league. This new contract essentially bound him to play three years longer than his earlier contract with the Toronto Marlboros; in addition, it imposed monetary penalties if he signed with a professional team within that time frame or within a period of three years after he ceased to be eligible to play in the junior league. As soon as he turned 18 (the age of majority), John abandoned the contract with the Toronto Marlboros and signed with the Houston Aeros, a professional team. The Marlboros sued him for breach of contract. Is John's contract enforceable against him? If yes, does this seem fair, and from whose point of view? If no, is it fair that John can sign a contract and then ignore his obligations under it?

1. identify the legal issues;

2. explain the legal principles;

3. apply the legal principles to the facts - facts are an essential part of the case;

4. reach a conclusion

Answer 1

Issue

Is John legally bound by the contract he signed when he was a minor?

Legal Principles

The general rule is minors do not have the capacity to enter into contracts but has two exceptions to this general rule:
a. Minors can enter into contracts for necessaries.
b. Minors can enter into beneficial contracts for services.

Facts

A contract for minor’s service, it is valid only if it is beneficial to the minor. In the given case John would have to pay monetary penalties if he signed with a professional team and the contract was three years longer than his original contract. This contract considered to be exploitative.

Conclusion

John signed this exploitative contract as a minor it is unenforceable against him.