Under Tennessee contract law, which of the following best describes the legal status of a purchase agreement signed by a minor who is 16 years old?
Correct Answer
A) The contract is voidable at the minor's option but may be ratified upon reaching majority
Under Tennessee common law and general contract principles recognized in Tennessee courts, a contract entered into by a minor is voidable, not void. The minor may disaffirm the contract before or shortly after reaching the age of majority (18 in Tennessee), or may choose to ratify it upon reaching majority. This is a foundational contract concept applied consistently in Tennessee real estate transactions.
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Related Topics & Key Terms
Key Terms:
Related Concepts
Contract termination occurs when a contract is ended or discharged, releasing both parties from their obligations. A contract can be terminated through performance, mutual agreement, operation of law, or breach.
A counteroffer is a response to an original offer that changes one or more terms of the offer, effectively rejecting the original offer and creating a new offer. The party who makes the counteroffer becomes the new offeror.
Earnest money is a deposit made by the buyer at the time of the offer or shortly after to demonstrate good faith and serious intent to purchase the property. It is also called a good faith deposit.
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