Wisconsin Motor Vehicle Salesperson Manual Practice Test

Contracts signed by persons under what age are not binding and may be canceled without a penalty?

1. 16 years

2. 18 years

3. 21 years

4. 20 years

The correct answer is: 16 years

Contracts signed by persons under 16 years of age are not binding because minors below this age are considered to lack the legal capacity to enter into a contract. This is why options B, C, and D are incorrect as they all mention ages above 16. The legal age of majority varies by country, but in most places, it is either 18 or 21 years. Thus, contracts signed by persons under 18 or 21 years of age may be considered binding, unless certain circumstances such as fraud or duress are proven.