Val, a Minor, Enters into a Contract to Buy a Kayak

question 69

Multiple Choice

Val, a minor, enters into a contract to buy a kayak and paddle from a Watercraft dealership. Later, after taking possession, Val disaffirms the deal. She

• A) can keep both the kayak and paddle.
• B) can keep the kayak but not the paddle.
• C) can keep the paddle but not the kayak.
• D) must return both the kayak and paddle.

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Definitions:

Convertible

Refers to a security (like bonds or preferred shares) that can be converted into a different form, commonly shares of the company's common stock.

Secured

Refers to loans or debt that are backed by collateral, reducing the risk for lenders.

Unsecured

Refers to loans or debts that are issued and supported only by the borrower's creditworthiness, rather than by any type of collateral.

Secured Bonds

Bonds backed by specific assets as collateral to ensure repayment in case of issuer default.