New York State Real Estate Salesperson Licensing Exam

What occurs if one party to a contract is a minor?

1. The contract becomes enforceable

2. The contract is voidable by the minor

3. The contract is valid

4. The minor must seek adult consent

The correct answer is: The contract is voidable by the minor

When a contract involves a minor, the contract is considered voidable by the minor. This means that the minor has the legal right to choose to affirm or void the contract. This legal protection exists because minors are deemed not to have the full legal capacity to enter into binding contracts – the law recognizes that they may not fully understand the implications of their decisions. Therefore, if a minor enters into a contract, they can decide to invalidate it, protecting them from potentially harmful agreements that they may not fully comprehend due to their age. In the context of the remaining options, the notion that the contract becomes enforceable does not apply because of the special legal status that minors hold in contract law. Similarly, claiming that the contract is valid overlooks the minor's right to void it. The statement about a minor needing adult consent does not hold because minors generally do not need consent to void a contract; they have the inherent legal right to do so on their own. This distinction is crucial when dealing with contracts involving individuals under the age of majority.