Galloism wrote:Infected Mushroom wrote:
You entered into a contract with the bank to create this account, this contract's purpose is to make the child the owner of the account. Since the child is too young, it probably makes you (explicitly or implicitly) a trustee (someone who holds legal title but has fiduciary obligations towards the child) until the child comes of age. At this point you've made a Gift to the child (the account); the account becomes a form of property. The child isn't a party, but he HAS benefited in that he has received a gift.
This intangible property created (the account) has a conditional attached to it, that something is to happen when the child turns 18. What you've really got here is a trustee-beneficiary relationship. You are the trustee, to hold the account for the child's benefit until he turns 18 (although in FORM, it might say the child already has the account).
The contract really only governs the CREATION of the account and an unspecified period of time after the account's creation. The rest is likely covered by a financial regulation statute which draws more on aspects of property law than contracts law. Essentially, it makes more sense to see an investment account as a property than as an on-going contract. If the bank does something wrong, it likely has breached this statute or that statute but I think if you argued it in terms of contact law, it would really primarily cover the creation phase. By the time the child has turned 18, the account has become a property (albeit a property governed by certain statutes) and to which the bank has certain obligations. But its not really a contract between the now adult and the bank; its just subsumed in the essential characteristic of the property itself (as dictated by a combination of what the statutes say and the specifics of how YOU created it). Essentially this is dealing with an intangible property.
It would be in the same category as an intellectual property right. An account is a piece of property (the law would assume that what is created is what was created under the original contract but it itself is not an ongoing contract) and like anything such as a car or a christmas tree... it can be transferred, gifted, held in trust, or sold etc subject to statutory constraints
So the contract provisions governing suing and arbitration and so forth are instantly nonbinding once the child turns 18? You sure about that?
if the now-adult went to court, it would be for a property law violation (the bank's fiduciary duty towards him as the account holder)... essentially misconduct on the part of the bank with respect to the account would be treated like if someone damaged your car while you kept it in their garage, the compensation would flow from the damage done to the account (ex the bank may have to pay the now adult for money he took out of the account)
this right flows from the fact that you issued a conditional gift to the child so that he becomes account holder at age 18; it is now his property and if damage is done to the property he has a right to claim
but the issue would be odd if you framed it in terms of contract; the contract law portion generally only covers the part where you are creating the bank account in the first place (ex did the bank actually create the intangible the agreement setting out to create or did they actually create something else?) But from that point on its much more fitting to seek remedies under property
essentially, the account by that point has become a piece of property (that can be sold, transferred, gifted etc subject to statutory limitations) and the bank operates more as a guardian; there really aren't any more parties beyond the original act of creation; by the time you are 18 the account has a life of its own as a property with legally recognised characteristics
the fact that it becomes the childs when he turns 18 is a result of the conditional characteristic of the account... not because the child now 18 has suddenly subsumed any role in a previous contract (that contract has become irrelevant except in so far as establishing what that intangible asset IS)