WK - Team B - David's part

WK Team B- - At the end of the summer Jeremy Atwater earned enough money to put a down payment on a car He decides to continue working part-time

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At the end of the summer, Jeremy Atwater earned enough money to put a down payment on a car. He decides to continue working part-time during school to earn money for the car payments. Jeremy purchased a car from Smooth Sales Used Cars. Smooth did not ask Jeremy how old he was; the salesman assumed he reached the age of majority. Jeremy paid the down payment and signed a contract stating that he would make payments of $200 each month. Six months later, Jeremy lost his job and could no longer make the payments. Jeremy took the car to Smooth and said he wanted to cancel the contract, and that he wanted his money back. What are the possible outcomes? Compare and contrast potential legal and equitable remedies. Cheeseman: p 516. Infancy doctrine  A doctrine that allows minors to disaffirm (cancel) most contracts they have entered into with adults. CAPACITY TO CONTRACT Generally, the law presumes that the parties to a contract have the requisite contractual capacity  to enter into the contract. Certain persons do not have this capacity, however, including minors, insane persons, and intoxicated persons. The common law of contracts and many state statutes protect persons who lack contractual capacity from having contracts enforced against them. The party asserting incapacity or his or her guardian, conservator, or other legal representative bears the burden of proof. Minors:The Infancy Doctrine Minors  do not always have the maturity, experience, or sophistication needed to enter into contracts with adults. Common law defines minors as females under the age of 18 and males under the age of 21. In addition, many states have enacted statutes that specify the age  of majority . The most prevalent age of majority is 18 years for both males and females. Any age below the statutory age of majority is called the period  of minority . To protect minors, the law recognizes the infancy doctrine , which gives minors the right to disaffirm  (or cancel   ) most contracts they have entered into with adults. This right is based on public policy which reasons that minors should be protected from the unscrupulous behavior of adults. Under the infancy doctrine, a minor has the option of choosing whether to enforce a contract (i.e., the contract is voidable   by a minor). The adult party is bound to the minor’s decision. If both parties to a contract are minors, both parties have the right to disaffirm the contract. If the minor has transferred consideration—money, property, or other valuables—to the
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This note was uploaded on 04/07/2011 for the course BUS 415 taught by Professor R.gomez during the Spring '11 term at DeVry Long Beach.

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WK Team B- - At the end of the summer Jeremy Atwater earned enough money to put a down payment on a car He decides to continue working part-time

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