Humber/Ontario Real Estate Course 1 Exam Practice

If a buyer under 18 signs a purchase agreement and decides to void it a week later, the agreement is:

1. Voidable

2. Not voidable as the transaction hasn't closed

3. Void and without legal status

4. Not binding on the seller

5. Automatically nullified

6. Subject to parental approval

The correct answer is: Voidable

The correct answer is that the agreement is voidable. In real estate transactions, contracts signed by minors (individuals under the age of 18) are typically considered voidable at the minor's discretion. This means that the minor has the right to affirm or rescind the contract upon reaching the age of majority or even beforehand. In this scenario, since the buyer is under 18, they can choose to void the purchase agreement, and the seller cannot enforce the contract against the minor. This capacity to void the agreement is rooted in the legal principle that contracts with minors are meant to protect those who may not fully understand the implications of their commitments. While some of the other options might touch on aspects of contract law, they do not accurately capture the specific legal standing of contracts entered into by minors. The idea of the transaction not being voidable because it hasn't closed ignores the rights minors have within contract law, and the concepts of it being 'automatically nullified' or 'not binding on the seller' do not accurately depict the protections offered to minors in contractual agreements. Parental approval might influence some agreements, but it does not alter the fundamental nature of a minor's legal capacity to void a contract.