BUS311_chapter_05

Itsbeenlessthantwoweeks

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Unformatted text preview: ract has been formed, but the contracts of a minor are voidable. Glow Images, Inc./Getty Images Example 5.2. Michael, age 17, buys a car from Cathy for $2,000. A week later, he turns 18, the age of majority in that state. A few days later, he begins to have transmission trouble, goes to a garage, and is told it will cost $800 to repair the car. Michael decides to disaffirm instead. rog80328_05_c05_089-110.indd 91 10/26/12 5:37 PM Section 5.2 Capacity CHAPTER 5 How long is a reasonable time? This is a question of fact that depends on the individual case, but clearly in the example above Michael can disaffirm. It’s been less than two weeks since he made the contract, and a few days since he came of age. How does a minor disaffirm? By saying anything, or doing anything, that would indicate to a reasonable person that the minor does not intend to go through with the contract. Example 5.3. Renaldo, a minor, buys a car from the local dealership, on an installment payment plan. He makes the down payment of $1...
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This test prep was uploaded on 04/09/2014 for the course BUS 311 taught by Professor Parker during the Spring '10 term at Ashford University.

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