When a Minor Falsely Advises the Other Party That He

question 28

Multiple Choice

When a minor falsely advises the other party that he is of the age of majority and based upon that misrepresentation,the other party in good faith enters into a contract with the minor:

• A) the minor has lost his right to disaffirm the contract because of the misrepresentation.
• B) the adult party can recover damages from the minor in tort.
• C) the minor is required to restore the other party to the position occupied before the making of the contract.
• D) There is no uniform rule.States differ,and depending upon the state,any of these could be correct.

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Definitions:

Equity Method

An accounting technique used for recording investments in associate companies, where the investment is initially recorded at cost and adjusted thereafter for the post-acquisition change in the investor's share of the investee's net assets.

Equipment Account

An account on the balance sheet that represents the current value of the equipment owned by a company after adjusting for depreciation and amortization.

Acquisition Method

An accounting approach used for consolidating the financial statements of a parent company and its subsidiaries to present as one entity.

Equity Method

Equity Method is an accounting technique used to record investments in other companies, where the investing company has significant influence but does not have full control or majority ownership.