Oregon 30-Hour Real Estate Law Practice Test

What is true about contracts entered into by minors?

1. They are always void

2. They are voidable by the minor

3. They need adult co-signature to be valid

4. They can be enforced if the adult agrees

The correct answer is: They are voidable by the minor

Contracts entered into by minors are considered voidable by the minor. This means that while the minor has the ability to enter into a contract, they also have the right to disaffirm or void the contract at their discretion until they reach the age of majority, which is typically 18 years old in most states, including Oregon. This legal principle is designed to protect minors, as they may not fully understand the implications or responsibilities associated with entering into a contract. This option is correct because it acknowledges the specific legal standing of minors in contract law—giving them a form of protection and flexibility that adults do not have. It allows minors to ensure they are not bound by agreements that they may not have the capacity to fully understand or negotiate effectively. Other options imply a blanket prohibition or requirement that does not accurately reflect the flexibility allowed to minors under the law. For example, stating that contracts are always void or require adult co-signatures misrepresents the legal standing of such contracts, while suggesting that contracts can be enforced solely with adult agreement overlooks the rights granted specifically to minors in these situations. This framework helps ensure that minors are treated fairly in contractual matters.