Q: Is it legally enforceable if i sign a operating agreement with my minor member of the LLC? If so who is bound by it?
If my minor partner and I sign an operating agreement for our manager-managed LLC, who is legally bound to the contract? Is it enforceable for both my minor partner and me? If my minor partner doesn’t void the contract and follows its terms, does the contract remain valid? If both my minor partner and I comply with the agreement, is it considered a real, enforceable legal contract, and are we both obligated to follow its terms?
Even if the contract is unenforceable on my minor partner's side, are the terms enforceable when I sign it? For example, can my minor partner legally become the manager or the owner once I sign operating agreement says minor member is the manager and the owner, even if the contract isn’t enforceable against them?
A: I don't believe the court will allow the LLC to continue. The court was force it to dissolve.
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A:
When you sign an operating agreement with a minor member of your LLC in California, the agreement is generally considered voidable by the minor. This means that while the agreement can be binding, the minor has the right to disaffirm it until they reach adulthood. If the minor chooses not to void the contract and adheres to its terms, the agreement may remain valid and enforceable between the parties involved.
Both you and the minor are initially bound by the terms of the operating agreement. However, because the minor lacks full legal capacity, the enforceability against them can be limited. If the minor does not take steps to void the agreement and acts in accordance with its provisions, the contract can function effectively, making it a real and enforceable legal contract for both parties.
Even if the contract is not enforceable against the minor, the terms you agree to as an adult remain enforceable. For instance, if the operating agreement designates the minor as a manager or owner, those roles can be recognized as long as you comply with the agreement's terms. It’s important to consult with a legal professional to ensure that your operating agreement complies with California laws and adequately protects all members of the LLC.
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