When Peter is 16, he enters into an agency agreement whereby he rents commercial property in exchange for a commission valued at 2% of the lease. When he turned 18 (the age of majority) he took no action. Does the contract continue?
A) Yes, it remains binding unless repudiated within a reasonable time of attaining the age of majority.
B) Yes, it remains binding unless ratified within a reasonable time of attaining the age of majority.
C) No, it is not binding unless repudiated within a reasonable time of attaining the age of majority.
D) No, it is not binding unless ratified within a reasonable time of attaining the age of majority.
E) No, it is not binding. It is automatically repudiated upon a minor attaining the age of majority

Question

Quizplus · Accepted Answer

Contracts entered into by minors are generally voidable at the minor's discretion. However, if upon reaching the age of majority, the individual does not repudiate the contract within a reasonable time, it remains binding.

When Peter Is 16, He Enters into an Agency Agreement