California Real Estate Broker ExaminationContractsMedium
A buyer makes an offer on a property, and the seller accepts it. However, the buyer was 17 years old at the time of signing the purchase agreement. Upon learning this, the seller is concerned about the validity of the contract. What is the legal status of this contract?
- AThe contract is valid and enforceable against both parties, as the minor made an offer that was accepted.
- BThe contract is void, as a minor cannot enter into a real estate agreement.
- CThe contract is voidable by the seller, as they entered into it with a minor.
- DThe contract is voidable by the minor, meaning the minor can choose to enforce or disaffirm it.
Show answer & explanationAnswer & explanation
Correct answer: D. The contract is voidable by the minor, meaning the minor can choose to enforce or disaffirm it.
In California, contracts entered into by minors (under 18) are generally voidable by the minor at their option, either during their minority or within a reasonable time after reaching the age of majority. The other party (the seller) cannot void the contract simply because the other party is a minor.
Why the other options are wrong
- A. This is incorrect. A contract with a minor is not fully enforceable against the minor, as they have the right to disaffirm it.
- B. This is incorrect. Contracts with minors are typically voidable, not void, allowing the minor protection.
- C. This is incorrect. The protection of voidability is generally for the minor, not the adult party.
Capacity to Contract (Minor)
The legal ability of a party to enter into a binding contract. Minors (under 18) generally lack full contractual capacity.
- Contracts with minors are typically voidable by the minor.
- The minor can disaffirm the contract during minority or shortly after turning 18.
- The adult party generally cannot void the contract based solely on the other party being a minor.
Memory trick: Remember, 'CALM' is key: Capacity, Agreement, Legality, Mutual Consideration.