[Motorcycle Crash] Cassandra, Who Would Be Turning 18 in Two

question 32

Multiple Choice

[Motorcycle crash] Cassandra, who would be turning 18 in two weeks, wanted to purchase a motorcycle at Hal's Cycles. Hal explained she could pay monthly installments through a financing agreement, and that he needed an ID to verify she was at least 18 years old. Cassandra, who strongly resembled her older sister Alana, handed Alana's drivers' license to Hal, but Hal did not notice the license had the wrong name. The next day, when cruising in her new motorcycle, Cassandra crashed into Jonah, who was injured in the collision. The next month, Cassandra received a bill for the first installment of the motorcycle. Her parents also received a notice that they were being sued by Jonah because of Cassandra's collision. Realizing her parents would be upset that she purchased a motorcycle, Cassandra went to Hal to return the broken motorcycle and tell him she was a minor and she's not responsible for any payments under the financing agreement.
-If, after her eighteenth birthday, Cassandra had paid the monthly payment on the financing agreement, would she still have the right to disaffirm the contract?

• A) Yes, as long as the disaffirmance is within a reasonable time after she reached the age of majority.
• B) Yes, although making the payment constitutes an implied ratification of the contract, she may still void the contract as long as the disaffirmance is within a reasonable time after she reached the age of majority.
• C) Yes, because courts recognize a public policy to protect minors who are naïve against others who may take advantage of them.
• D) No, because making the payment constitutes an implied ratification of the contract, and once a contract is ratified, it is no longer voidable.
• E) No, because her actions do not constitute a valid ratification.

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Definitions:

Mitigate Damages

The legal requirement or effort to minimize the harm or loss suffered as a result of a breach of contract or other wrongdoing.

Non-Disclosure Agreement

A legal contract between at least two parties that outlines confidential material, knowledge, or information that parties wish to share with one another for certain purposes but wish to restrict access to or by third parties.

Proprietary Recipe

A confidential formulation owned by an individual or a company, protected as a trade secret, which gives a unique identity to a product.

Specific Performance

A legal remedy requiring a party to fulfill their obligations under a contract, typically used when monetary damages are inadequate compensation.