Section 35-7-118 - Liability to third persons(a) A claim based on: (1) A contract entered into by a custodian acting in a custodial capacity;(2) An obligation arising from the ownership or control of custodial property; or(3) A tort committed during the custodianship; may be asserted against the custodial property by proceeding against the custodian in the custodial capacity, whether or not the custodian or the minor is personally liable therefor.
(b) A custodian is not personally liable: (1) On a contract properly entered into in the custodial capacity unless the custodian fails to reveal that capacity and to identify the custodianship in the contract; or(2) For an obligation arising from control of custodial property or for a tort committed during the custodianship unless the custodian is personally at fault.(c) A minor is not personally liable for an obligation arising from ownership of custodial property or for a tort committed during the custodianship unless the minor is personally at fault.Acts 1992, ch. 664, § 1; T.C.A. § 35-7-218.