Oregon 30-Hour Real Estate Law Practice Test

Which statement is accurate regarding minors and contracts?

1. They can sign any contract and it is binding

2. Contracts with minors are never valid

3. Minors can disaffirm contracts before reaching 18

4. Minors can only enter into contracts with parental consent

The correct answer is: Minors can disaffirm contracts before reaching 18

The statement that minors can disaffirm contracts before reaching 18 is accurate because, under the law, minors are granted the right to reconsider and potentially void agreements they have entered into prior to reaching the age of majority, which is typically 18 in most jurisdictions, including Oregon. This legal protection is in place to safeguard minors, recognizing that they may not have the maturity or experience necessary to fully understand the implications of contractual agreements. Generally, a minor can enter into a contract; however, they have the ability to opt out of that contract before they reach the age of majority. This ability to disaffirm applies to most types of contracts, although there are certain exceptions, such as contracts for necessities (e.g., food, clothing, shelter) that may not be disaffirmed. The rationale behind this principle is to protect minors from being bound by commitments they may not fully comprehend or that may not be in their best interest, ensuring they can make informed, independent decisions once they reach adulthood. Other statements do not accurately reflect the legal standing regarding minors and contracts. For example, saying that contracts with minors are never valid overlooks the fact that while such contracts can generally be voided, they are still enforceable unless the minor chooses to disaffirm them.