In: Operations Management
Kevin, a 16-year old, paid $4600 cash for a used Camaro from Star Chevrolet (“Star”). When the car blew a gasket, the dealer refused to give Kevin his money back. Kevin repaired the car himself and drove it on the highway, where it was wrecked. Kevin sued Star to get his money back.
Is Kevin entitled to disaffirm the contract event though the Camaro has been destroyed? Explain.
Is this contract a void or voidable contract?
List the two exceptions to general rule concerning minors and contracts
Answer- Yes, Kevin will be entitled to
disaffirm the contract even though the camaro has been destroyed
because Kevin is 16 years old and is a minor. The minimum age for a
person to sign a legal contract is 18 years. Moreover, Kevin
repaired the car himself which means he tampered with the car and
will not be eligible to get a refund.
The contract will be considered as a void contract as Kevin is a
minor and under the age of 18 years. A person cannot sign a legit
contract until he reaches the age of 18. Moreover, Kevin drove the
car on highway and for driving a car on highway requires driving
experience of minimum 1 year. The minimum age to obtain a license
is 16 and kevin is 16 years old. That means Kevin was driving the
car where he was not legally allowed to.
2 exceptions to general rule concerning minors and contracts.
1) A minor cannot void a contract for necessities like food,
clothing, and lodging.
2) Minors who enter into sports or entertainment contracts are held
to them and cannot void them at will.
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