Ralph, a Minor, Enters into a Contract with Seth for the Installation

question 64

Multiple Choice

Ralph, a minor, enters into a contract with Seth for the installation, maintenance, and repair of an HVAC system in Ralph's Uncle Ted's warehouse. On reaching the age of majority, Ralph sends e-mail to Seth, stating that Ralph intends the contract to be binding. This is

• A) express ratification.
• B) implied ratification.
• C) disaffirmance.
• D) none of the choices.

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Definitions:

Equilibrium Price

A market condition where supply meets demand, and there is no inclination for price to change, leading to market balance.

Mutually Beneficial Trades

Exchanges that occur when all parties involved gain benefits or profits from the transaction.

Total Surplus

The sum of consumer surplus and producer surplus in a market, representing the total net benefit to society from trade.

Consumer Surplus

The separation between what consumers envisage paying for a good or service and the amount they actually disburse.