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Cengage Advantage Books: Essentials of the Legal Environment Today 5th Edition

Cengage Advantage Books: Essentials of the Legal Environment Today (5th Edition)

Book Edition5th Edition
Author(s)Cross, Miller
ISBN9781305262676
PublisherCengage Learning
SubjectBusiness
Chapter 12, End of Chapter, Business Scenarios and Case Problems, Exercise 12-8
Page 312

Minors. D.V.G. (a minor) was injured in a one-car auto accident in Hoover, Alabama. The vehicle was covered by an insurance policy issued by Nationwide Mutual Insurance Co. Stan Brobston, D.V.G.'s attorney, accepted Nationwide's offer of $50,000 on D.V.G.'s behalf. Before the settlement could be submitted to an Alabama state court for approval, D.V.G. died from injuries received in a second, unrelated auto accident. Nationwide argued that it was not bound to the settlement because a minor lacks the capacity to contract and so cannot enter into a binding settlement without court approval. Should Nationwide be bound to the settlement? Why or why not? [ Nationwide Mutual Insurance Co. v. Wood, 121 So.3d 982 (Ala. 2013)] (See Contractual Capacity .)

Answer

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