David, a buyer, signs a purchase agreement in Arkansas for a property listed at $285,000. He is 17 years old and has not been legally emancipated. The seller, who is 45, signs as well. Under Arkansas contract law, what is the status of this purchase agreement?
Correct Answer
B) The contract is voidable at David's option because he lacks contractual capacity as a minor
Under Arkansas law, a person must be at least 18 years old (the age of majority) to have full contractual capacity. A contract entered into by a minor (under 18) is voidable, not void. This means David, as the minor, has the right to disaffirm (void) the contract, but the adult seller cannot use David's minority as a basis to avoid the contract.
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Related Topics & Key Terms
Key Terms:
Related Concepts
Equitable title is the buyer's interest in a property after a purchase contract is signed but before closing, giving the buyer the right to acquire legal title in the future. The seller retains legal title until the deed is delivered at closing.
A financing contingency makes the purchase contract conditional upon the buyer obtaining mortgage approval within a specified time period. If the buyer cannot secure financing, they can cancel the contract and receive their earnest money back.
An inspection contingency gives the buyer the right to have the property professionally inspected within a specified time frame and to negotiate repairs or cancel the contract based on the findings.
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