Kevin, a 17-year-old in California, signs a contract to purchase a residential property in San Diego for $600,000. His parents co-sign the agreement. Under California law, what is the status of this contract?
Correct Answer
C) The contract is voidable at Kevin's option because he is a minor, but enforceable against the parents who co-signed
Under California Family Code §6710, a minor's contract is voidable at the minor's election, not void. Kevin can choose to disaffirm the contract. However, the parents who co-signed are adults with full contractual capacity and remain bound by their obligations as co-signers under California law.
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Related Topics & Key Terms
Key Terms:
Related Concepts
Liquidated damages are a predetermined amount of money specified in the contract that the non-breaching party is entitled to receive if the other party breaches. In real estate, the earnest money deposit typically serves as liquidated damages.
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.
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