Illinois Leasing Agent Practice Exam

What is the legal status of a contract made between an adult and a minor?

1. Automatically enforceable

2. Void

3. Voidable by the minor

4. Breach of contract

The correct answer is: Voidable by the minor

A contract made between an adult and a minor is considered voidable by the minor. This means that the minor has the legal right to affirm or reject the contract at their discretion. The rationale behind this legal principle is that minors are generally not considered to have the full legal capacity to enter into contractual agreements due to their age and lack of experience. This protection allows minors to avoid contracts that might exploit their inexperience. When a contract is voidable, it remains valid unless the minor chooses to rescind it. If the minor opts to void the contract, it becomes as if the contract never existed. This legal framework is designed to protect minors from making binding commitments that they may not fully understand or that might not be in their best interests. Other options do not accurately reflect the legal status of such contracts. The notion of automatic enforceability misrepresents the protections in place for minors, while categorizing the contract as void would imply it has no legal effect whatsoever, which is not the case unless it is voided by the minor. Furthermore, identifying the situation as a breach of contract mischaracterizes the nature of the agreement since the minor's ability to void the contract does not inherently indicate a failure to comply with its terms.