Helen, a 19-year-old South Carolina resident, signs a purchase agreement to buy a condominium in Columbia. Unknown to the seller, Helen was adjudicated mentally incompetent by a South Carolina court one year earlier, and a guardian was appointed to manage her affairs. The seller now seeks to enforce the contract. What is the legal status of this contract under South Carolina law?
Correct Answer
D) The contract is void because Helen was adjudicated mentally incompetent and her guardian must act on her behalf
Under South Carolina law, a person who has been adjudicated mentally incompetent by a court lacks legal capacity to contract. Unlike a minor's contract (which is merely voidable), a contract entered into by a person who has been judicially declared incompetent is void — not merely voidable — because the court's adjudication removes the person's legal authority to act independently. Helen's guardian must act on her behalf, and any contract Helen signs without guardian authority is void from the outset. The seller cannot enforce it regardless of the seller's lack of knowledge.
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Related Topics & Key Terms
Key Terms:
Related Concepts
An appraisal contingency allows the buyer to cancel or renegotiate the contract if the property's appraised value comes in lower than the agreed-upon purchase price. This contingency protects buyers from overpaying.
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.
More Contracts Questions
Which of the following is required for a valid contract in California?
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After a residential purchase contract has been signed by both parties in Illinois, the buyer and seller verbally agree to change the closing date. What is the legally sound way to document this change?
Specific performance in North Dakota:
- → In a contract for deed (land contract), who retains legal title to the property until the purchase price is fully paid?
- → Which of the following is NOT required for a valid bill of sale?
- → A Nevada real estate salesperson is helping a buyer draft a purchase agreement. Which of the following is NOT a required element for a Nevada residential purchase agreement to be legally enforceable?
- → Sawyer Iverson is reviewing an Illinois issue in Joliet. The person assumes that attorney review automatically replaces every inspection, appraisal, or financing deadline in a standard Illinois residential contract. Which statement best applies?
- → Tom and Linda sign a purchase agreement for a home in Hartford, Connecticut. The agreement includes a financing contingency stating that if Tom cannot obtain a mortgage commitment within 21 days, either party may void the contract. On day 19, Tom's lender issues a written mortgage commitment. On day 22, Tom changes his mind and tries to void the contract by claiming the financing contingency was not satisfied. Which of the following best describes the legal status of the contract?
- → Avery Jenkins is reviewing an Illinois issue in Normal. The person asks what happens if neither attorney sends a disapproval or proposed change during the standard review period. Which statement best applies?
- → Under Montana law, a purchase agreement for residential real property becomes legally binding on the seller when which of the following occurs?
- → Johnny wants the seller's patio furniture included in his purchase of a house. Before the offer is signed and delivered to the seller, he asks his agent to attach a page covering the furniture to the offer. That attached page is best described as:
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