California Real Estate SalespersonContractsMedium
A 17-year-old signs a purchase agreement to buy a condo using funds from a trust fund. Before closing, the seller discovers the buyer's age. What is the legal status of this contract?
- AVoid, because minors lack legal capacity entirely
- BValid and fully enforceable by both parties
- CVoidable at the minor's option, but not the seller's
- DVoidable only if a court appoints a guardian first
Show answer & explanationAnswer & explanation
Correct answer: C. Voidable at the minor's option, but not the seller's
Contracts entered into by minors are generally voidable at the minor's election, protecting the minor from being bound while allowing the minor to enforce or disaffirm the contract. The adult party (seller) cannot use the minor's status to escape the contract.
Why the other options are wrong
- A. Minors' contracts are voidable, not automatically void.
- B. The contract is not fully enforceable against the minor, who may disaffirm it.
- D. No guardian appointment is required for the minor to exercise the right of disaffirmance.
Voidable Contract - Minor's Capacity
A contract entered by a minor is voidable at the minor's discretion, meaning the minor may choose to enforce or rescind it, but the other party remains bound.
- Minors generally lack contractual capacity in real estate
- The minor, not the other party, holds the right to disaffirm
- Some contracts for necessities may be enforceable against minors
- Emancipated minors may have full contractual capacity
Memory trick: Minors hold the 'undo button'—only they can void the deal.