Illinois Real Estate Practice Exam

An adult signs a purchase agreement with a minor:

1. The contract is voidable per the minor's consent

2. The contract is automatically void

3. The contract becomes binding upon the minor turning 18

4. The contract is legally enforceable against the minor

The correct answer is: The contract is voidable per the minor's consent

The correct answer is that the contract is voidable per the minor's consent. In real estate and contract law, minors (typically individuals under the age of 18) lack the legal capacity to enter into binding contracts. This means that any contract they sign can be voided at their discretion. The concept of it being "voidable" indicates that while the agreement is valid and can be enforced if the minor chooses to uphold it, the minor also has the right to reject the contract. This provides protection for minors against entering into agreements that they may not fully understand or cannot fulfill. The other contexts suggest different scenarios. For instance, stating that the contract is automatically void would imply it has no legal effect from the beginning, which is not the case; it is initially valid until the minor opts to void it. The notion that the contract becomes binding upon the minor turning 18 suggests automatic enforcement once they reach adulthood, which undermines their right to void it beforehand. Lastly, the assertion that the contract is legally enforceable against the minor contradicts the legal principle that gives minors the ability to void contracts entered into while they were underage.