A 16-year-old starts a business and hires a graphic designer to create a logo for $2,000. The designer finishes the logo, but the 16-year-old refuses to pay, stating that the agreement is unenforceable. If the designer sues to enforce the contract, what is the most likely outcome?
The contract is unenforceable because the terms of the agreement involved an illegal transaction.
The contract is not enforceable because minors generally cannot enter into legally binding agreements.
The contract is enforceable if the designer can show they relied on the promise to their detriment.
The contract is enforceable because the designer completed the project.
Minors typically lack the legal capacity to enter into binding contracts, which makes their agreements voidable at their option. In this scenario, the 16-year-old can void the contract, even though the graphic designer fulfilled their performance. Exceptions exist, such as for contracts involving necessities or when the contract is ratified upon reaching the age of majority. The other options are incorrect either because they incorrectly assume completion of obligations guarantees enforceability, incorrectly suggest illegality, or misstate the reliance principle.
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