Question 79

This contract is voidable.

A contract entered into by a minor, such as a 16-year-old, is generally considered voidable at the minor's discretion. This means the minor has the right to affirm or void the contract upon reaching the age of majority or shortly thereafter.

A) voidable

This option is correct because minors are allowed to enter into contracts, but they have the legal right to void those contracts. In this case, the 16-year-old can choose to cancel the contract since they are not of legal age to be fully bound by it.

B) void

This option is incorrect because a void contract would imply that it is null from the outset and cannot be enforced by either party. However, contracts made by minors are not void; they are voidable, allowing the minor to affirm or reject the agreement.

C) legal

This option is incorrect because while the contract is legal in form, it is not fully enforceable against the minor. The legal status of the contract does not eliminate the minor's right to void it.

D) bilateral

This option is incorrect as it refers to a type of contract where both parties make mutual promises. While the contract may be bilateral, the key aspect here is the minor's ability to void the contract, which is not addressed by this option.

Conclusion

The correct answer is that the contract is voidable because it was entered into by a minor, who has the legal right to disaffirm the agreement. All other options either mischaracterize the nature of the contract or do not address the specific legal implications of a minor entering into a contract.