Understanding Francis' Legal Position in Real Estate Purchase

What is Francis' legal position in the real estate purchase scenario?

Which of the following statements accurately reflects Francis' legal standing?

(1) Because of his inability to understand English, Francis did not have the legal capacity to enter a contract. He is therefore not bound by the agreement.
(2) Francis neglected to find out the contents and true nature of the contract he signed. He is bound by the contract and if he cannot complete he may forfeit his deposit.
(3) Because Francis has demanded the return of his deposit there is no consideration. Because there was no consideration a contract cannot be said to be formed.
(4) Because Francis did not understand the contract, the offer was not made in clear and unambiguous terms. The contract is therefore voidable at Francis’ option and he should get his deposit back.

Francis' Legal Position

The correct statement of Francis’ legal position is (2) Francis neglected to find out the contents and true nature of the contract he signed. He is bound by the contract and if he cannot complete he may forfeit his deposit.

Explanation

Francis is bound by the contract he signed even though he did not understand its contents and nature. Francis' lack of understanding of the English language does not negate his legal capacity to enter into a contract. It is his responsibility to ensure that he understands the terms and conditions before signing.

Because Francis signed the contract without reading or having it read to him, he is bound by its terms and may be obligated to complete the purchase or forfeit his deposit.