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What is Lion Tree's liability if he terminates both these contracts? Advise him, citing legal basis in support

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Question - Lion Tree is a 13-year-old Australian junior golf champion. Everyone in the golfing circuit believes that he has what it takes to be world champion someday. His parents, Brent and Belinda sign a sports agency contract with Jenny Maguire Sports Agency Pty Ltd. The term of the contract is three years. Lion, on his own, also signed a contract to play golf with the Australian junior golf team. Lion also has an athletic apparel contract, which his parents also signed on his behalf, with PlusTwo Sportswear that requires him to wear only the company shoes exclusively for 2 years. As long as he abides by this term, the contract also stipulates that he would get PlusTwo shoes for free. On the other hand, if Lion does not abide by this condition, PlusTwo has the right to claim payment for all shoes given to Lion.

Now, Lion's parents want to terminate the contracts with Jenny Maguire Sports Agency and PlusTwo Sportswear because they are unhappy with the way Lion is being treated by both these companies.

What is Lion Tree's liability if he terminates both these contracts? Advise him, citing legal basis in support of your advice.

Answer -

Lion faces legal liability as he is legally obligated to the various contracts he entered with Jenny Maguire Sports Agency and PlusTwo Sportswear. By entering into agreement with the bothe companies Lion is obligated to stick to the terms of the agreement and failure to this is a breach of contract. As per the contracts, Lion needs to see out his contracts as per the stipulated time agreed upon in the contract. The contract made by Lion and the two companies has legal foundation as it meets the requirements for a valid contract and also meets the legality of object. For a contract to be regarded valid, one needs to have the capacity where the contract law stipulates that one needs to be mentally sound, an adult or not bankrupt.

In the case of Lion, he is a minor and the law provides that a minor can be represented by his parents or guardian who will need to represent the best interests of the minor. Lion parents representing Lion is legal and them entering into contract with the two companies they are trying to represent the best interests of Lion as they believe he can be a world champion someday. With Lion's parents representing him and also putting his best interests at heart it makes the contract of Lion with the two companies valid. For a contract to be regarded legal, there needs to be a genuine consent where genuine consent needs to have three elements voluntary, intelligently and freely.

In Lion's case, his parents made the decision to entering into contract with the two companies for him which the law approves. The law gives Lion's parent's consent to enter into contract with his best interests at heart and this coves the provision of genuine consent in the contract between Lion and the two companies. With genuine consent provided for it makes the contract valid. The contract between Lion and the two companies meets the requirements for valid contract and legality of object and this makes the contract to be valid and legal. Lion terminating the contract exposes him to breach of contract and he can incur huge penalties as Lion is required to see out his contract as per the required time.


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