Scott enters into a contract with Tiffany (a minor) that is later determined to be voidable at Tiffany’s option. If Tiffany decides to enforce the contract:
Neither party is released from it.
Scott may choose to rescind the contract.
The court will not permit Tiffany to enforce the contract.
None of the above.
The correct answer and explanation is :
The correct answer is: Neither party is released from it.
Explanation:
A contract with a minor, such as Tiffany in this scenario, is generally voidable at the minor’s option. This means Tiffany has the legal right to either enforce or disaffirm the contract. Scott, as the adult, does not have the same right; the law protects minors from being bound by contracts that they enter into, recognizing that minors may lack the legal capacity to fully understand the implications of their actions.
However, in this case, if Tiffany decides to enforce the contract, it means she is choosing to ratify the contract, making it valid and enforceable. When a minor enforces the contract (i.e., ratifies it), both parties are now bound by its terms, and neither party can simply back out without legal consequences.
If Tiffany had chosen to disaffirm the contract instead, the contract would have been voided, and neither party would have any further obligations under it. But in the context where Tiffany enforces the contract, she has chosen to go forward with the agreement, and both she and Scott would be bound by the contract, meaning neither party is released from it.
Let’s clarify the other options:
- Scott may choose to rescind the contract – This is incorrect because Scott, being the adult, does not have the option to rescind a contract with a minor unless the minor disaffirms it. Tiffany has the option to rescind or enforce the contract, but Scott does not.
- The court will not permit Tiffany to enforce the contract – This is also incorrect. Tiffany, as a minor, has the option to either enforce or disaffirm the contract. Courts allow minors to enforce contracts they choose to ratify.
- None of the above – This is incorrect because the first option (“Neither party is released from it”) is correct.
Image:
Here is a visual diagram that illustrates the concept of a contract with a minor, showing the two options Tiffany has: enforcing (ratifying) the contract or disaffirming it. If Tiffany chooses to enforce the contract, both she and Scott would be bound by it.