ContractsIntermediateDelaware Exam

What is 'capacity to contract' and how does it apply to Delaware real estate transactions involving minors?

AAny person in Delaware can enter a binding real estate contract
BA minor (under 18) generally lacks legal capacity to enter a binding contractCorrect
CMinors can always sign fully binding real estate contracts so long as a parent or guardian simply co-signs alongside them
DCapacity only matters in commercial transactions, not residential

Why A minor (under 18) generally lacks legal capacity to enter a binding contract Is Correct

Answer B: A minor (under 18) generally lacks legal capacity to enter a binding contract

Legal capacity to contract requires being of legal age (18 in Delaware) and of sound mind. Contracts with minors (under 18) are voidable at the minor's option — the minor can disaffirm the contract before or within a reasonable time after reaching majority.

Exam Tip: Contracts

Contract questions frequently test the essential elements required for a valid contract. Remember: competent parties, mutual consent, lawful object, and sufficient consideration. Watch for void vs. voidable distinctions.

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