A buyer and seller in Indiana execute a purchase agreement. Before closing, the seller discovers that the buyer is 17 years old and has been acting without parental consent. The seller wants to enforce the contract. Under Indiana law, which of the following is the most accurate statement about the contract's enforceability?
Correct Answer
B) The contract is voidable at the minor buyer's option, but the seller cannot void it on the basis of the buyer's age
Under Indiana contract law, contracts entered into by minors (persons under 18) are voidable — not void. The right to void the contract belongs to the minor, not to the other party. The seller cannot void the contract simply because the buyer is a minor. The minor buyer may choose to affirm the contract upon reaching the age of majority or disaffirm it before or within a reasonable time after turning 18. The seller is bound by the agreement unless the minor elects to void it.
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Related Topics & Key Terms
Key Terms:
Related Concepts
An assignment of contract transfers one party's rights and obligations under a contract to a third party called the assignee. The original party, known as the assignor, transfers their contractual position to someone who was not originally part of the agreement.
A bilateral contract is an agreement in which both parties exchange promises and are both obligated to perform, while a unilateral contract is one in which only one party makes a promise and the other party is not obligated to act.
A breach of contract occurs when one party fails to perform their obligations under the contract without a legal excuse. The non-breaching party is entitled to legal remedies including damages, specific performance, or contract rescission.
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