The Maximum Amount of Time That a Minor Has to Disaffirm

question 42

Multiple Choice

The maximum amount of time that a minor has to disaffirm a contract is:

• A) one year from the date of the agreement.
• B) 30 days from learning of his or her right to disaffirm.
• C) the age of majority.
• D) a reasonable period of time after reaching the age of majority.

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Definitions:

Consumer Price Index

A measure that examines the weighted average of prices of a basket of consumer goods and services, such as transportation, food, and medical care, often used as an indicator of inflation.

Real Rate Of Return

The annual percentage profit earned on an investment, adjusted for changes in the price level due to inflation.

Annually Compounded

Interest on an investment or loan calculated once per year, including interest on the initial amount and all previously accumulated interest.

Effective Rate

The actual interest rate of an investment or loan when compounding interest is taken into account, differing from the nominal rate by including the effects of compounding.