Which of the Following Statements Is Correct in Relation to the Contractual

question 4

Multiple Choice

Which of the following statements is correct in relation to the contractual rights and obligations of minors (persons under 18 years) in New South Wales?

• A)Contracts with minors are presumptively binding,which means the courts will assume they are valid.
• B)Contracts with minors are not presumptively binding,which means the courts will assume they are not valid.
• C)Minors can only make valid contracts for necessaries,such as basic food and accommodation.
• D)Minors who make gifts of cash or property to a third person are not legally bound by these types of agreements.

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Definitions:

Expressly Bind

To explicitly or distinctly commit or obligate oneself or an entity to an agreement or course of action.

Unidentified Principal

Refers to a situation in agency law where an agent acts on behalf of a principal, but the identity of the principal is not disclosed to the third party.

Actual Authority

The express or implied power granted by a principal to its agent, allowing the agent to perform acts on the principal's behalf, which legally binds the principal with third parties.

Apparent Authority

The appearance or assumption of authority based on the actions, words, or deeds of the principal or because of circumstances the principal created.