Business Law about a minor in a contract question need help ?
Question by Matt D: Business Law about a minor in a contract question need help ?
So i have to answer this question for Business law class from the book Business Law Smith and Robertson’s and im having trouble here is the question
Smith bought a pickup truck from Kind and Julian doing business as the Julian Pontiac Company. Smith at the time of purchase was seventeen years old living at him and working construction. The sales contract says he traded in a passenger car for the truck and was given 723 credit toward the trucks 1743 purchase price agreeing to pay the remainder in monthly installment. After he paid the first month truck caught on fire and was rendered useless/ The insurance agent upon finding out Smith was a minor refused to deal with him. Smith sued to exercise his right as a minor to rescind the contract and to recover the purchase price he already paid 723 credit for the car plus the first month payment. The defendant argue that Smith even as a minor cannot rescind the contract as it was for a necessary item. Are they correct?????
Any help would be appreciated. My thought is no he can rescind the contract because a minor entering into a contract can disafirm that contract and get back what he has paid and return the car in the form it may exist regardless if it is on fire. Let me know if im going in the right direction thanks.
Best answer:
Answer by ZonieGirl
In most states a minor (usually under the age of 18) cannot enter into a legally binding contract. That being the case I would say the contract was never valid, therefore, any and all monies that the minor gave to the seller of the car would have to be returned to him. It would be as if the contract never existed.
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