Lil Pump, the smash-hit “Gucci Gang” artist, voided his contract with Warner Brothers late last week. And there is literally nothing Warner Brothers can do about it.
As a free agent, the 17-year-old is taking all offers with the hope of signing an $8-10 million dollar deal. He’ll probably get it, too. Gucci Mane told Pump to “name your own price.” Variety reports that Pump’s current offers reach as high as $12 million.
How can Lil Pump void his contract?
It’s elementary, my dear Watson! It’s elementary!
Basic contract law says that minors are not competent to consent to a contract. But, what the heck does that mean?
Competence to sign a contract is determined a couple of different ways. If you sign a contract when you are drunk or high, the contract probably isn’t enforceable. The court will not enforce contracts against people with certain mental deficiencies. Finally, without taking extra steps, courts do not enforce contracts signed by minors.
The theory is that minors are too naive and immature to negotiate with the same authority as an adult. This rule protects minors.
Now, like everything else in the law, there are exceptions to this rule.
What contracts can minors sign?
If the minor signs a contract for a necessity the courts will hold the minor to his/her agreement. Shelter, utilities, and sometimes transportation qualify as necessities. Credit cards do not qualify.
Multi-million dollar recording contracts don’t qualify as a “necessity” either.
So, what about all those child stars? Are they running around with contracts, making bags of money, without any legal obligations?
No! Of course not!
Many states (in fact, nearly all the states) will certify contracts between minors and adults. Once the contract is certified in court, it is binding. The minor cannot get out of it without major legal problems once the court certifies the contract.
The only reason Lil Pump can get out of his contract with Warner Brothers is that someone at the label dropped the ball. Like, big-time dropped the ball. If his contract were certified, as it should have been, he’d be stuck with the terms of the agreement.
But instead, he can freely sign a new contract without worrying about any sort of “breach of contract lawsuit” nastiness. Hopefully, the young man will also consult with a financial advisor to invest his windfall wisely.