RES exam question on Contract & Agency Law: A 19-year-old signs an option to purchase a private condominium unit, with no parent…
A 19-year-old signs an option to purchase a private condominium unit, with no parent involved. What is the position?
- AHe is bound: since 2009 a contract by anyone aged 18 or over takes effect as if he were of full age
- BHe is bound, the purchase of a home being a contract for necessaries
- CHe is not bound: land contracts are carved out of that rule, and majority is 21
- DHe is bound only if he ratifies the contract in writing after turning 18
Show answer & explanation
Answer
C. He is not bound: land contracts are carved out of that rule, and majority is 21
Explanation
Issue: a statutory reform with a hole in it. Rule: the age of majority in Singapore is 21, not 18. Section 35(1) of the Civil Law Act 1909 provides that from 1 March 2009 a contract made by a minor who has attained 18 takes effect as if he were of full age — but section 35(4)(a) expressly carves out any contract for the sale, purchase, mortgage, assignment or settlement of land, other than a lease not exceeding three years. Application: so an 18, 19 or 20 year old still lacks capacity to contract to buy or sell land here, and the vendor cannot enforce against him. A dwelling is not a contract for necessaries, which covers goods and services suitable to the minor's condition in life and actually needed. Conclusion: not bound, because land is carved out.
Study the concept behind this question: Misrepresentation & an Estate Agent's Liability
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