David, age 17, signs a contract to purchase a residential lot in Greenville, South Carolina. Two months later, before reaching age 18, David decides he does not want the property and informs the seller he is disaffirming the contract. Which statement correctly describes the legal status of this contract under South Carolina law?
Correct Answer
B) The contract is voidable at David's option, and he may disaffirm it before or within a reasonable time after reaching age 18
Under South Carolina law, contracts entered into by minors (persons under age 18) are voidable — not void — at the minor's election. David, as the minor, holds the power to disaffirm the contract. He may exercise this right before reaching the age of majority or within a reasonable time thereafter. Upon valid disaffirmance, the parties are generally restored to their pre-contract positions. The contract is not void ab initio; it is valid until the minor chooses to disaffirm it.
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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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