(Ontario)
Question:
Buyer Adam reaches his 18th birthday (1st May) in one month , and he signed an Agreement of Purchase and sale with Seller Bob on 1st April, completion date is 1st June. But for some reason, Buyer Adam found out that he couldn’t afford Seller Bob’s property, and he informed Seller Bob on 15th of May that he wants to cancel the Agreement, for he was under age of 18 while signing the Agreement.
Is this Agreement avoidable? Even though the agreement was created by the age of Minor, but the Buyer Adam reached the age of Majority before the closing date.
Answer:
Voidable: The contract is voidable. It has to be confirmed or affirmed in some way if it’s to be a “go-ahead”.
Affirmation: If the Minor does any act to affirm the contract after reaching the age of majority, then, the contract is enforceable.
After an extended period of time, the enforceability is questionable. If benefits have been given and received by an adult, this will constitute evidence of affirmation of the contract.
Brian Madigan LL.B., Broker