A broker obtains a listing agreement and later discovers that, before signing it, the property...

The correct answer is B. Legal capacity is an essential element of an enforceable contract. Where a person has previously been judicially adjudicated incompetent and a guardian has authority over the relevant property affairs, the ward ordinarily cannot independently create the brokerage contract described.

The properly authorized guardian or other legally empowered fiduciary would generally need to act on behalf of the incapacitated person.

Massachusetts Board contract curriculum identifies capacity to contract as a fundamental requirement for valid leases and contracts. It also recognizes competency of the parties as an essential contract element.

This should be distinguished from a situation where someone has not been adjudicated incompetent and a dispute later arises over the person ' s mental capacity at the time of signing. Those cases can involve more nuanced factual and legal analysis.

Real estate licensees should never independently decide complex guardianship or competency issues. When capacity is questionable, legal counsel and applicable court documentation should be reviewed.

Study Guide Reference: Contracts — Competency, Incapacity, Guardianship and Contract Validity.