BUS311_chapter_05

Michaelwillbeheldliableforthereasonablevalueofstayingi

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Unformatted text preview: If you own real estate, you have a legal duty to pay the taxes on it. If you make a contract to carry out such a legal duty, it is binding even if you are a minor. Example 5.8. Mary, age 15, has a baby. One night the baby gets very sick and Mary takes her to the emergency room of the hospital for treatment. Mary then refuses to pay the bill. Mary will be liable, because as a parent she had a duty to provide medical care for her child. Contracts for Necessities Another exception to the general rules for minors involves necessities purchased by the minor. A necessity can be defined as anything that a minor reasonably needs to live and covers such essential items as food, clothing, shelter, medical care, and credit in most states. Educational expenses are also treated as necessities in some states. While minors can disaffirm these contracts, they can still be held liable for the fair market value of the necessity. rog80328_05_c05_089-110.indd 93 10/26/12 5:37 PM Section 5.3 Genuine Assent CHAPTER 5 Example 5.9. Michael, a minor, comes home from boarding school to fi...
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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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