RES exam question on Contract & Agency Law: section 35 of the Civil Law Act 1909
Daniel, aged 19, signs four contracts in one month without a parent involved: an agreement to buy a condominium unit, a two-year lease of a studio flat, a five-year lease of a shop unit and a mobile phone plan. Under section 35 of the Civil Law Act 1909, which of the following is/are correct? (i) The agreement to buy the condominium unit binds Daniel as if he were of full age. (ii) The two-year studio lease binds Daniel as if he were of full age. (iii) The five-year shop lease binds Daniel as if he were of full age. (iv) The mobile phone plan binds Daniel as if he were of full age.
- A(iv) only
- B(i), (ii) and (iv) only
- C(ii), (iii) and (iv) only
- D(ii) and (iv) only
Show answer & explanation
Answer
D. (ii) and (iv) only
Explanation
Answer: (ii) and (iv) only. From 18, contracts bind as if of full age, but land deals other than short leases, and leases over 3 years, are carved out.(ii) True. A lease not exceeding three years is not carved out.(iv) True. An ordinary service contract falls within section 35(1).Watch out: Majority remains 21 for the carved-out contracts, so an 18-to-20-year-old cannot be bound by them as an adult.Rule: A contract by a minor who has turned 18 has effect as if he were of full age. Contracts for the sale, purchase, mortgage, assignment or settlement of land, other than a lease not exceeding 3 years, and leases of land for more than 3 years are carved out.Source: Civil Law Act 1909, section 35(1) (from 1 March 2009) and section 35(4) (SSO, current version at 1 Oct 2026); /learn/capacity-to-hold-land-minors-companies-mental-capacity
Why the other options are wrong
- (i) False. A purchase of land is carved out by section 35(4).
- (iii) False. A lease of land for more than three years is carved out.
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