The heir to a large estate will be of legal age within 30 days. The heir lists for sale with a broker one of the properties held by the estate. The broker knows of a buyer for the property and sells it within 24 hours of listing, with closing to be in 45 days. Both listing and sale contracts are

Rationale

The listing and sale contracts are voidable.

In this scenario, the heir is not yet of legal age, which makes the contracts voidable due to the heir's capacity to enter into legal agreements. Until the heir reaches the age of majority, they have the option to affirm or void the contracts.

A (fulfilled) YOUR ANSWER

A contract is considered fulfilled when all parties have completed their obligations as outlined in the agreement. In this case, since the heir has not reached legal age and the contracts are still subject to potential voiding, they cannot be deemed fulfilled at this time.

B (executed) YOUR ANSWER

An executed contract is one in which all parties have fully performed their contractual duties. Since the heir has not yet legally bound themselves due to their age, the contracts cannot be defined as executed until they affirm them after reaching legal age.

C (voidable) CORRECT

Due to the heir being underage, both the listing and sale contracts are voidable. This means the heir has the legal right to choose whether to affirm or void these agreements, thus rendering them unenforceable until the heir reaches the age of majority.

D (executory) YOUR ANSWER

An executory contract is one where obligations remain to be performed by one or more parties. While the contracts may have executory elements (like the upcoming closing), the key issue here is the heir's incapacity, making the contracts voidable rather than merely executory.

Conclusion

In this situation, the legal status of the heir impacts the enforceability of the contracts. Because the heir is not of legal age, both the listing and sale contracts are voidable, allowing the heir to choose whether to proceed with or nullify the agreements once they reach the age of majority. Understanding the implications of capacity to contract is essential in real estate transactions involving minors.

The heir to a large estate will be of legal age within 30 days. The heir lists for sale with a broker one of the properties held by the estate. The broker knows of a buyer for the property and sells it within 24 hours of listing, with closing to be in 45 days. Both listing and sale contracts are

The listing and sale contracts are voidable.

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