Marty,a 16-Year-Old,contracted with Cream-Of-The-Crop Cycles to Buy an $8,000 Motorcycle

question 24

Multiple Choice

Marty,a 16-year-old,contracted with Cream-of-the-Crop Cycles to buy an $8,000 motorcycle.He agreed to make monthly payments until the purchase price plus interest were paid in full.It is three years later and Marty has not disaffirmed the contract and has made regular payments on the cycle since turning 18.Which of the following is correct?

• A)The contract is void and Marty has no obligation.
• B)The contract is now voidable by Cream-of-the-Crop Cycles.
• C)Marty has ratified the contract and is now bound by its terms.
• D)Marty has ratified the contract but can still get a return of the payments made while he was a minor.

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Definitions:

Contingency Plan

A strategy or plan developed to take into account possible future events or circumstances, usually in the context of risk management.

Financial Projections

Estimates of a company's future financial performance, including income, expenses, and cash flow.

Chain of Command

The hierarchy within an organization that establishes the authority and responsibility relationships among employees.

Fastest Growth

The highest rate of expansion in size, production, or market share experienced by an entity over a specific period.