PSI New Jersey Real Estate State Practice Exam

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Prepare for the New Jersey Real Estate Exam. Ace your test with comprehensive multiple-choice questions. Each question includes detailed explanations and hints. Start studying today and boost your confidence!

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A contract executed by a 16-year-old buyer is typically considered:

Enforceable
Voidable
Expired
Valid under certain conditions

The correct answer is: Voidable

A contract executed by a 16-year-old buyer is typically considered voidable because minors generally have the legal right to disaffirm contracts they enter into. In many jurisdictions, including New Jersey, a person under the age of 18 is considered a minor and lacks the capacity to enter into most contracts; thus, they can choose to void the agreement if they wish. This protects minors from potential exploitation and ensures that they have the ability to reconsider their obligations once they reach the age of majority. The option that indicates enforceability would not apply here since minors are not fully bound by contracts. While there are some exceptions where contracts can be valid under certain conditions, those typically pertain to necessities or specific established laws concerning minors. The concept of expiration doesn't relate to the age of the party involved; rather, it refers to the time frame within which the contract must be executed or fulfilled. Therefore, the designation of voidable accurately reflects the legal consideration regarding contracts signed by minors.