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
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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.
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