The length of the hypotenuse is 26 ft.
Let x be the length of the shorter leg.
The length of the hypotenuse is x + 16 ft.
The area of the triangle is (1/2)(x)(x + 16) = 120 ft^2.
Simplifying the equation, we get (x^2 + 16x) = 240.
Rearranging the equation, we get x^2 + 16x - 240 = 0.
Factoring the equation, we get (x - 10)(x + 24) = 0.
Since x cannot be negative, x = 10.
Therefore, the length of the hypotenuse is 10 + 16 = 26 ft.