Answer:
State law controls the age at which an individual is deemed to have the capacity to enter into a contract. Typically, the age is 18, but it may be up to 21 in some states. Most (perhaps all) states also have statutes that provide that a minor may be "emancipated" by order of a court or, in some instances, even by marriage. When an individual is legally emancipated, they are basically then treated as an adult for purposes of the law. If you make a loan to the underage son, with the father as the co-signer, your ability to pursue collection options against the father will depend upon whether the state law views the loan contract as void or voidable or even as simply unenforceable only as to the son. If the father did not receive the proceeds from the loan or the benefit of the proceeds and the contract is considered void, your position won't be too attractive.
Copyright, 2001, BankersOnline.com. First published on BankersOnline.com 01/02/01.
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