3. The heir to a large estate will be of legal age within 30 days. The heir lists for sale with a broker one of the properties held by the estate. The broker knows of a buyer for the property and sells it within 24 hours of listing, with closing to be in 45 days. Both listing and sale contracts are
Answer: C
The contracts are voidable.
Both the listing and sale contracts are considered voidable because the heir is not yet of legal age, which typically means they do not have the legal capacity to enter into binding contracts until they reach that age.
A) fulfilled.
This option is incorrect because for a contract to be fulfilled, all terms must be completed. In this case, the contracts are not fulfilled since the heir is not legally able to finalize the sale until reaching the age of majority.
B) executed.
This option is incorrect as well. An executed contract means that all parties have completed their obligations under the agreement. Since the heir is still underage, the contracts cannot be considered executed.
C) voidable.
This option is correct. Contracts entered into by a party who is not of legal age are typically voidable at the discretion of that party. In this scenario, the heir can choose to void the listing and sale contracts upon reaching legal age.
D) executory.
This option is incorrect. An executory contract refers to an agreement where some obligations are still outstanding and have not yet been performed. Although the sale has been arranged, the heir's lack of legal capacity renders the contracts voidable rather than simply executory.
Conclusion
The contracts are voidable due to the heir's status as a minor, which affects their capacity to enter into binding agreements. All other options fail because they do not recognize the legal implications of the heir's age, which is crucial in understanding the nature of these contracts. Thus, option C is the only one that accurately reflects the legal standing of the contracts involved.