In: Accounting
1. Find and read the following cases
2. Answer the following questions
Should a person be allowed to disaffirm a contract he or she made as a minor after reaching the age of minority?
Yes, a person is allowed to disaffirm a contract he or she made as a minor after reaching the age of minority.The minor must state in writing his or her intention not to honor the contract.If he or she does not dis affirm the contract with the time limit,the contract becomes ratified and the entire contract becomes binding.
What is a reasonable length of time after reaching the age of majority to permit disaffirmance?
Immediately when one hits the age of majority which is 18 years.
What ethical considerations are involved in these cases?
1)Jones v. Free Flight Sport Aviation
It was unethical and fraud for jones to sue for damages when clearly his contract was void.By accepting to benefits from services of free flight sport aviation after attaining the majority age he became bind by the original contract which prohibited him for suing for damages in case of an accident.His silence for the length of 10 months after attaining the age of majority is a clear indication that he had accepted to abide by the previous contract.
2) Flood v. Fidelity & Guaranty Life Insurance
The policy was fraudulently acquired and the defendant failed to prove direct provable motive of so .The Louisiana law had voids which the plaintiff exploited.The law failed to sanction any scheme which has as its purpose the certain infliction of death for inter alia,financial gains through receipts of proceeds of life insuarance.