Wen Purchased an Automobile from Nick for $10,000

question 32

True/False

Wen purchased an automobile from Nick for $10,000. Unknown to Wen, Nick had used the automobile as security for a loan from his bank, and the bank had registered its security interest in the automobile under the provincial personal property security registration legislation. A few months after the sale, Nick defaulted on the loan, and the bank discovered that Wen was in possession of the automobile. The bank is not entitled to seize the automobile, because it had not given Wen notice of its claim against the vehicle before Wen purchased it.

Recognize the age of majority for contracting as established by law and its relevance in contract formation.

Grasp the concept of disaffirmance, including the conditions under which a contract can be disaffirmed.

Identify the legal effects of ratification and how it impacts contracts entered into by minors.

Understand the protections and limitations associated with contracts involving necessaries.

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Definitions:

Equity Model

A theory in social psychology that focuses on maintaining equitable relationships, asserting that individuals feel satisfied when the ratio of their contributions to benefits is equal to that of their partners.

Achievement Motivation Model

A theory that explains an individual's drive to pursue and attain goals or standards of excellence.

Physiological Needs

Basic essential requirements for human survival, such as food, water, warmth, and rest, fundamental to Maslow's hierarchy of needs.

Esteem Needs

According to Abraham Maslow's hierarchy of needs, these are the fourth level of human needs, involving respect, self-esteem, status, recognition, and strength.