Question

Jess is 17 years old and bought a new computer from Wallie. Three days after he turned 18, Jess sold the computer to his sister. Which of the following is the most likely result regarding any attempt by Jess to disaffirm the contract with Wallie?

Multiple Choice

• Jess may legally disaffirm the contract with Wallie.
• Jess has indicated his intent to be bound by the contract by selling the computer and can no longer disaffirm.
• Jess may recover the cost of the computer from Wallie.
• Jess may disaffirm the contract only if his sister is under 18.

In many states, intoxicated persons are treated like people who lack mental capacity:

Multiple Choice

• Only if they were so intoxicated that they were unable to understand the nature of the business at hand when they entered into the agreement.
• When they were so drunk as to be considered less-than-ordinary-intelligence.
• Whenever they cannot pass a field sobriety test.
• Only when they have an official diagnosis of "alcoholic."

Andrew, age 15, made a significant amount of money mowing lawns. He bought a vacant lot at age 16 and wanted to disaffirm the contract at age 17. Which of the following is the most likely result of his attempt to disaffirm

Multiple Choice

• He would be allowed to disaffirm.
• He would not be allowed to disaffirm because he would be considered an emancipated minor.
• He would not be allowed to disaffirm at any point because real estate is involved.
• He would be required to wait until reaching the age of majority to disaffirm.

A mistake may involve which of the following?

Multiple Choice

• Error in judgment about a material fact
• Ignorance of a material fact
• Untrue belief about a material fact
• A mistaken belief by a party that he or she can fulfill the obligations due under a contract

Jack, a minor, purchased a video game at the Game Place, which has a sign posted above the cash register stating "NO RETURNS OR EXCHANGES." After opening the game and trying it out, Jack decided he wanted to return the game. Which of the following is a true statement?

Multiple Choice

• Because he opened the game, Jack cannot return the game to the store.
• Because the sign clearly stated no returns, Jack cannot return the game to the store.
• Because video games are now considered a necessary, Jack cannot return the game to the store.
• Jack may return the game and receive a full refund.

Answer 1

1) Jess has Indicated his intent to be bound by the contractor selling the computer and can no longer disaffirm.

A minor has the right of disaffirmance of any contract which he or she has entered whether or not it has already been executed. Once a minor reaches the age of majority any contract entered prior to the age of majority can either be disaffirmed

within a reasonable but predetermined period of time. If that does not occur, the contract is deemed to be ratified.

Disaffirmation can also be made either in writing or orally or by an act that indicates the intention of not honoring the contract. If this does not occur, it is deemed to be ratified.

In this case, Jess has sold a computer which indicates his intention to bind by the contract.

2) Only if they were so intoxicated that they were unable to understand the nature of the business at hand when they entered into the agreement.

An intoxicated person is treated as incapable of entering into a contract when at the time of entering into a contract he/she is unable to understand it. The test of capacity is done to understand whether the party at the time of entering into the contract had sufficient mental capacity to understand the nature and effect of the contract.

3) He would be required to wait until reaching the age of majority to disaffirm.

A minor has the right of disaffirmance of any contract which he or she has entered whether or not it has already been executed. Once a minor reaches the age of majority any contract entered prior to the age of majority can either be disaffirmed

within a reasonable but predetermined period of time. If that does not occur, the contract is deemed to be ratified.

However, there are special instances in which minors cannot disaffirm a contract. Cases, where the contract cannot be disaffirmed, are contracts for food, shelter,clothing,healthcare or employment andReal Estates.He can disaffirm a contract on reaching maturity.

4)Untrue belief about a material fact

Mistake in contract law refers to erroneous belief held by one or both parties to contract at the time contract is entered into.

5)Jack may return the game and receive a full refund.

Minor has the right to disaffirm and return goods or services which are non neccessaries

Non Necessaries are things that are relative luxuries and are not required to maintain economic status.

Video game is not considered as necessity goods.