Asked by
Kirby White
on Nov 21, 2024
Verified
Which of the following is true regarding the obligations of a minor on disaffirmance?
A) In all states, a minor must return any consideration in his control but is entitled to a full refund of any purchase price regardless of the condition of the consideration when returned.
B) In all states, a minor is entitled to a full refund without returning consideration.
C) In all states, a minor must return any consideration in his control, must make restitution, and must pay for any loss in value of the collateral.
D) In all states, a minor only receives a return of half the minor's investment.
E) The obligations of a minor upon disaffirmance vary from state to state.
Disaffirmance
The legal cancellation or voiding of a contract or agreement, often due to one party's lack of capacity or discovery of a significant mistake.
Consideration
Something of value given by both parties to a contract that induces them to enter into the agreement.
Restitution
An act of restoring or paying compensation for loss or damage to the original state or owner.
- Determine the circumstances prompting contract ratification and grasp the implications of either ratification or disaffirmance for the legal validity of contracts signed by minors.
Verified Answer
JB
Learning Objectives
- Determine the circumstances prompting contract ratification and grasp the implications of either ratification or disaffirmance for the legal validity of contracts signed by minors.