Humber/Ontario Real Estate Course 1 Exam Practice

In what legal scenario could a minor enter into a contract?

1. The contract is voidable but not void

2. It is void if not signed by a parent or guardian

3. The contract is immediately legally binding

4. Contracts with minors are always void

5. The court must approve all such contracts

6. The contract is non-negotiable and enforceable

The correct answer is: The contract is voidable but not void

A minor can enter into a contract, but the law generally treats such contracts as voidable. This means the minor has the right to affirm or reject the contract upon reaching the age of majority. While the minor can choose to ratify the contract once they are of legal age, they also have the option to void it. This legal principle is in place to protect minors, recognizing that they may not fully understand the implications of their commitments. The other options present situations that do not accurately reflect the legal standing of contracts involving minors. For instance, declaring the contract void outright or requiring a parent or guardian's signature does not align with the principle of voidable contracts, where minors retain the right to make such choices. Furthermore, contracts made by minors are not automatically non-negotiable or enforceable without specific conditions being met. Thus, the aspect of being voidable properly captures the legal nuances of minors engaging in contracts.