alternate_case_problems - ALTERNATE CASE PROBLEMS C HAPTER...

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A-41 ALTERNATE CASE PROBLEMS C HAPTER 13 C APACITY AND L EGALITY 13-1. Mental Incompetence. Frank Feiden was diagnosed with Alzheimer’s disease in 1982. On January 11, 1986, during a hospital stay for surgery Feiden conveyed his farm to his sons, Harry and Norman. Harry was deeded a larger share of the property than Norman. Norman asked a court to set the deeds aside, alleging that his father was not mentally competent when the deeds were signed. Medical evidence introduced at trial conflicted. A physician, a psychiatrist, and an attorney all testified that when they had seen Frank at various times during 1985 and early 1986, Frank had been unable to handle his financial affairs or understand the legal consequences of his actions. Another psychiatrist, however, testified that Frank “had lucid intervals.” The attorney who obtained Frank’s signatures on the deeds stated that Frank understood what he was signing and was aware that he was deeding more of the property to Harry than to Norman. The nursing summaries indicated that on the day that the deeds were signed, Frank was having lucid periods. How should the court rule? Explain fully. [ Feiden v. Feiden , 151 A.D.2d 889, 542 N.Y.2d 860 (1989)] 13-2. Contracts by Minors. Smith purchased a car on credit from Bobby Floars Toyota, Inc., a month before his eighteenth birthday. Smith made regular monthly payments for eleven months but then returned the car to the dealer and made no fur- ther payments on it. The dealer sold the car and sued Smith to recover the difference be- tween the amount obtained by the sale of the car and the money Smith still owed to the dealer. Smith refused to pay on the ground that he had been a minor at the time of pur- chase and had disaffirmed the contract after he had reached the age of majority. Will the car dealer succeed in its claim that the ten monthly payments made after Smith turned eighteen constituted a ratification of the purchase contract? Discuss. [ Bobby Floars Toyota, Inc. v. Smith, 48 N.C.App. 580, 269 S.E.2d 320 (1980)] 13-3. Contracts by Minors. Robertson, a minor, entered into a conditional sales agreement whereby he purchased a pickup truck from Julian Pontiac Co. for $1,743.85. Robertson traded in a passenger car for which he was given a credit of $723.85 on the purchase price, leaving a balance of $1020, which he agreed to pay in twenty-three monthly installments. Robertson had already paid one of the installments when the pickup truck began to experience electrical wiring difficulties. Less than a month after the purchase of the truck, Robertson turned eighteen. About two weeks later, as a result of the electrical wiring defects, the truck caught fire and was practically destroyed.
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A-42 APPENDIX A: ALTERNATE CASE PROBLEMS—CHAPTER 13 Robertson refused to make any further payments under the installment agreement. Julian Pontiac sued Robertson to recover the truck. Robertson filed a complaint to re-
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This note was uploaded on 12/14/2009 for the course BUSINESS bus 210 taught by Professor Levine during the Spring '09 term at American University in Bulgaria.

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alternate_case_problems - ALTERNATE CASE PROBLEMS C HAPTER...

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