National Real Estate Exam (PSI)ContractsEasy
A 16-year-old signs a contract to purchase a vacant lot from an adult seller. Under general contract law principles, this contract is best described as:
- AFully enforceable against both parties
- BAutomatically ratified once the minor turns 18
- CVoid from the start because minors cannot contract
- DVoidable at the option of the minor
Show answer & explanationAnswer & explanation
Correct answer: D. Voidable at the option of the minor
Minors lack full legal capacity, so contracts they enter into are voidable — the minor may choose to disaffirm or, upon reaching majority, ratify the agreement. It is not automatically void or automatically enforceable.
Why the other options are wrong
- A. Incorrect because the adult cannot force enforcement against the minor.
- B. Ratification is possible but not automatic; the minor must affirmatively ratify.
- C. Void would mean no contract ever existed; this is inaccurate for minor contracts.
Capacity and Voidable Contracts
A contract entered into by a party lacking full legal capacity (such as a minor) is voidable at that party's option, not automatically void.
- Capacity is one of the essential elements of a valid contract
- Minors and some mentally incapacitated persons have limited capacity
- Voidable contracts can be disaffirmed or ratified by the incapacitated party
Memory trick: Minors can 'mind-change' — voidable, not void.