A minor child cannot sign a contract or other legally binding agreement. However, a child’s guardian or parent can sign a settlement agreement on behalf of the child if the child has a claim for injuries caused by an accident.
A Minor’s Compromise is when an adult signs on behalf of a child so the child can receive money from a personal injury settlement since the law does not allow the child to sign for themselves until they become an adult. This requires that the proposed settlement be submitted to the Court and approved by a judged. The Court will only approve the settlement if it is in the best interests of the minor child.
Additionally, the two-year statute of limitations for filing a personal injury claim is extended for a minor child involved in an accident. First, it is tolled and extended two-years after the minor child’s 18th birthday. Second, it is tolled and extended two-years after a doctor diagnosed an injury resulting from an accident since some injuries in children cannot be discovered until the child has had time to fully develop.