If a Minor Sells Property That the Buyer Then Resells

question 45

True/False

If a minor sells property that the buyer then resells to a good faith purchaser for value and the minor then disaffirms the sales contract, under both the traditional view and the UCC, the minor can recover the property from the good faith purchaser for value since the minor has the power of avoidance and both purchasers had only voidable title.

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Definitions:

Bank Reconciliation

Bank reconciliation is the process of matching and comparing the account records held by a company with the bank statements to ensure accuracy and consistency in financial records.

Petty Cash Fund

A small amount of cash kept on hand in a business for minor expenses.

Delivery Expenses

Costs incurred by a company in distributing its products to customers, including shipping fees and handling charges.

Merchandise Inventory

Goods that a company holds for the purpose of selling them to customers, reported as a current asset on the balance sheet.