Under what circumstances can a real estate contract be considered voidable rather than void?
Correct Answer
B) When one party was a minor or lacked mental capacity at signing
A voidable contract is one that exists but can be set aside at the option of the protected party, for example a minor, a person who lacked mental capacity, or a party induced by duress or misrepresentation. A void contract, such as one for an illegal purpose or one missing an essential element, has no legal effect from the start.
Why This Is the Correct Answer
Minority and mental incapacity are capacity defects that make a contract voidable. The contract exists, but the protected party (or their guardian or representative) may choose to enforce it or have it set aside.
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