Business, 22.07.2020 19:01 Dkhaurithompson
Capacity to Contract
In a state in which the age of majority for contracting purposes is 18, 17-year-old Daniel was married, employed, and living with his wife in their own apartment. Daniel and his wife went to Mattox Motors, a used car dealership, and purchased a used car for $500 cash. After driving the car for several months, Daniel was involved in a serious collision and damaged the car. He was one week over the age of 18 at this time. The next day, Daniel sent a letter to Mattox Motors stating that he was disaffirming the sales contract because he was underage at the time he entered the contract, and that he wanted his money back.
A. Does Daniel have the right to get out of the contract?
B. Does Mattox Motors have to give him his money back?
C. Would it make a difference if Daniel had used the car to earn a living?
D. If, instead of being a minor at the time the contract was made, Daniel had been mentally disabled or intoxicated, would he have the right to get out of the contract?
E. Is it ethical for Daniel to disaffirm the contract after having wrecked the car?
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Capacity to Contract
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