20. 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.
The listing and sale contracts are voidable because the heir, who is not yet of legal age, has the right to rescind these agreements. Since the heir will reach legal age within 30 days, the contracts can be declared voidable until that time.
A) fulfilled
The contracts cannot be considered fulfilled because they have not yet been completed. A fulfilled contract means all terms have been executed, which is not the case here as the closing is set for 45 days in the future.
B) executed
Executed contracts refer to agreements where all parties have completed their obligations. In this scenario, the contracts are not executed since the closing has not yet occurred and the heir is still underage.
C) voidable
The contracts are voidable because the heir, being under the legal age at the time of the agreement, has the option to affirm or rescind the contracts until they reach legal age. This is a fundamental principle in contract law regarding minors.
D) executory
While the contracts are in the process of being completed, they are not classified as executory in this context. Executory contracts imply that some obligations are still pending, but here, the key issue is the heir's legal status that allows for the contracts to be voidable.
Conclusion
The correct designation of the contracts as voidable stems from the heir's minor status, granting them the ability to rescind the contracts before reaching legal age. All other options fail to appropriately account for this legal nuance, as they misrepresent the nature and enforceability of the contracts given the circumstances.