BUS311_chapter_05

Onceyouratifyyouloseforevertherighttodisaffirmratifica

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Unformatted text preview: ,000 and has made three monthly payments when the car is stolen. Renaldo stops making payments to the dealer. Renaldo’s cessation of payments would indicate he does not intend to be bound to the contract, so this is an implied disaffirmance. He does not have a legal duty to return the car, because he does not have it. What if Renaldo lied to the dealer about his age in order to get the car? The states have a variety of rules dealing with a minor’s misrepresentation. Some still allow disaffirmance, some allow it under some circumstances, and some don’t allow it at all. Also, states differ on whether the minor can be held liable for fraud in such situations. If a person makes a contract while a minor, comes of age, and ratifies the contract, he or she is now bound. Once you ratify, you lose forever the right to disaffirm. Ratification can be either express or implied. Example 5.4. Mary the minor buys that car from Dan. Then she turns 18. Now of majority age, Mary tells Dan she considers the contract to be binding. A week later, she changes her mind and wants to disaffirm. Mary canno...
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