BUS311_chapter_05

Itshouldalsobenotedherethatonlytheminorhastherighttovo

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Unformatted text preview: t disaffirm, because she came of age and expressly ratified the contract. Example 5.5. Renaldo the minor buys the car from Dealer. He turns 18. He makes a payment on the car. Now the car is stolen, and Renaldo wants to disaffirm. He cannot, because he has already ratified. He must continue to pay for the car. The right of minors to disaffirm contracts can place a heavy burden on merchants who sell goods to minors on a regular basis. Yet most merchants are quite happy to deal with minors. The reason? It makes good business sense to bear the risk that a minor may disaffirm a contract, since only a very small percentage of minors ever do so. One way around this potential risk is to have an adult cosign any contract with a minor. If this is done, the adult contracting with a minor has a greater measure of protection, since she may recover the full price of the contract from the cosigner in the event that the minor decides to disaffirm the contract. It should also be noted here that only the minor has the right to void a contract entered into during minority—the adult who contracts with a minor is fully bound b...
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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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