Randy, as two older brothers before him, moved out of the house when he was quite young. When he was 17, he and his older brother, Ted, wanted to buy a condominium in Nelson. They both had jobs and the bank was willing to lend them money and take a mortgage on the condo. Which of the following is a correct statement about the law governing this situation?
A) All infants' contracts are enforceable as soon as they become adults.
B) A mortgage granted by Randy to the bank is effective until a court orders otherwise.
C) The mortgage agreement would be binding on Randy as an adult if he continued to make payments after reaching the age of majority.
D) All contracts with infants are void.
E) These contracts would be binding on Randy only if he disclosed the fact that he was a minor to the other parties.

Question

Quizplus · Accepted Answer

The law considers Randy an infant (someone who has not yet reached the age of majority), so any contracts he enters into are voidable at his option. However, once he reaches the age of majority (in most provinces, 18), he can choose to either continue with the contract or cancel it. In this case, if Randy continues to make payments on the mortgage after he turns 18, he is considered to have ratified the contract and it is binding on him.

Randy, as Two Older Brothers Before Him, Moved Out of the House