Texas Real Estate State Practice Exam

What term describes a contract where one party, like a minor, has the right to void the agreement?

1. Void/Invalid contract

2. Non-negotiable contract

3. Voidable contract

4. Legally-binding contract

The correct answer is: Voidable contract

The term that best describes a contract where one party, such as a minor, has the right to void the agreement is "voidable contract." This concept is integral to contract law, where certain individuals, due to their status or circumstances, have the legal ability to affirm or reject a contract. In the case of minors, the law recognizes that they may not have the maturity or understanding to engage in binding agreements, granting them the ability to void contracts they enter into. This provides a legal safeguard, ensuring that minors are not held to agreements that they may not fully comprehend or have the capacity to negotiate. Other terms like void/invalid contract refer to agreements that are not legally enforceable from the start, while non-negotiable contracts imply a lack of flexibility in terms. Legally-binding contracts indicate agreements that are enforceable by law, but minors do not fall under this category when it comes to their rights to void contracts.