Matt Contracted to Purchase a Computer at Age 16

question 35

Multiple Choice

Matt contracted to purchase a computer at age 16. Until when can he disaffirm the contract?

• A) He cannot cancel it at any time.
• B) He can disaffirm the contract until his eighteenth birthday.
• C) He can avoid the contract while he is under 18 and for a reasonable period of time after he reaches age 18.
• D) He can avoid the contract anytime until he reaches age 21.

---

Definitions:

Cash Receipts

The collection of money, including coins, notes, and electronic payments, received by a business during a given period.

Restricted Cash

Funds that are reserved for a specific purpose and cannot be used for general corporate purposes.

Separately Reported

Financial items or activities that are shown distinctly in financial statements to provide clarity and understanding of a company's financial position.

Outstanding Checks

Checks that have been issued and recorded in the account holder's register, but have not yet been cashed or cleared by the bank.