A South Dakota real estate contract signed by a 16-year-old is:
Correct Answer
B) Voidable by the minor
Contracts signed by minors are voidable at the option of the minor. The minor may choose to enforce or disaffirm the contract, but the adult party cannot void it. The contract is not automatically void — it remains valid until the minor chooses to disaffirm.
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Related Topics & Key Terms
Related Topics:
Key Terms:
Related Concepts
Novation is the substitution of a new contract for an existing one, or the replacement of one party with a new party, with the consent of all parties involved. The original party is completely released from all obligations.
Offer and acceptance is the process by which one party proposes specific terms for a contract and the other party agrees to those exact terms, creating mutual assent. This mutual agreement, also called a meeting of the minds, is an essential element of every valid contract.
An option contract gives one party the exclusive right, but not the obligation, to purchase or lease a property at a specified price within a specified time period. The buyer pays option consideration to keep the option open.
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- → A Rhode Island licensee encounters a listing contract is drafted. What should the licensee remember?
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