RES exam question on Leasing of Private Property: contract is it
Wei Jie is 19 and runs a small online business. In one month he signs four contracts in his own name. His father asks a salesperson which of them binds Wei Jie as if he were of full age under the Civil Law Act. Which contract is it?
- AA mortgage of a shophouse he inherited, to raise working capital for his business
- BA four-year lease of a shop unit for his business, with no option to renew
- CA contract to buy a studio apartment, paid for with a cash gift from his parents
- DA two-year tenancy of a condominium unit near his university, at $3,200 a month
Show answer & explanation
Answer
D. A two-year tenancy of a condominium unit near his university, at $3,200 a month
Explanation
Answer: The two-year tenancy at $3,200 a month. A lease not exceeding 3 years is outside the land carve-out, so section 35(1) makes it binding.Watch out: The age of majority is still 21. Section 35 treats a contract made at 19 as an adult's, but not a land contract other than a lease not exceeding 3 years.Rule: From 1 March 2009, a contract made by a minor who has reached 18 has effect as if he were of full age. Contracts for the sale, purchase, mortgage, assignment or settlement of land are carved out, other than a lease not exceeding 3 years, as is any lease for more than 3 years.Source: Civil Law Act 1909 s 35(1) and (4), sso.agc.gov.sg, current version at 1 October 2026
Why the other options are wrong
- Mortgage of the inherited shophouse: A mortgage of land falls within the section 35(4) carve-out, so section 35 does not make it an adult's contract.
- Four-year shop lease, no renewal option: A lease of land for more than 3 years falls within the carve-out.
- Purchase of a studio apartment: A purchase of land falls within the carve-out, so it does not bind him as an adult's contract.
Study the concept behind this question: Leasing Private Residential Property (Singapore)
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