Asked by Razmin Ellazar on Jul 30, 2024
Verified
Beth has just turned 17 years of age.She entered into a contract with ABC Corp.for the purchase of a used car,with full payment of $5,000 due in 30 days.This car is necessary for Beth to use as transportation to her job,which she needs in order to pay tuition at the university where she is a freshman.Beth's parents have refused to help her pay for college.Three days later,Beth changes her mind;she now wants to return the car because she has learned that it is worth only $4,000,which is in fact the reasonable value of this car.Assuming the car is legally classified as a "necessary" and Beth does not pay,and ABC Corp.sues,the outcome of this lawsuit will be that:
A) Beth must pay $5,000.
B) Beth must pay $4,000.
C) Beth does not have to pay for the car;she is entitled to the remedy of rescission because she is a minor.
D) Beth does not have to pay for the car;she is entitled to the remedy of punitive damages because ABC overcharged her.
Necessary
In legal and philosophical terms, necessary refers to something required, indispensable, or absolutely needed to achieve a certain outcome or fulfill a condition.
Rescission
The process of formally terminating a contract, returning all involved parties to their pre-contractual state, often due to mistakes, fraud, or misrepresentation.
Punitive Damages
Compensation awarded to a plaintiff beyond actual damages, intended to punish the defendant for particularly harmful actions and deter similar future conduct.
- Master the protective elements and limitations inherent in contracts dealing with essential commodities.
- Understand the legal options available to entities when incapacity is the reason for a contract's annulment.
Verified Answer
TN
Trang NguyenAug 06, 2024
Final Answer :
B
Explanation :
Since minors are under obligation to pay only the reasonable value of a necessary actually received,Beth only needs to pay the $4,000 that is the actual value of the car.
Learning Objectives
- Master the protective elements and limitations inherent in contracts dealing with essential commodities.
- Understand the legal options available to entities when incapacity is the reason for a contract's annulment.