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Capacity to Contract


In a state in which the age of majority for contracting purposes is 18, 17-year-old Daniel was married, employed, and living with his wife in their own apartment. Daniel and his wife went to Mattox Motors, a used car dealership, and purchased a used car for $500 cash. After driving the car for several months, Daniel was involved in a serious collision and damaged the car. He was one week over the age of 18 at this time. The next day, Daniel sent a letter to Mattox Motors stating that he was disaffirming the sales contract because he was underage at the time he entered the contract, and that he wanted his money back.
  • Does Daniel have the right to get out of his contract?
  • Does Mattox Motors have to give him his money back?
  • Would it make a difference if Daniel had used the car to earn a living?
  • If, instead of being a minor at the time the contract was made, Daniel had been mentally disabled or intoxicated, would he have the right to get out of the contract?
  • Is it ethical for Daniel to disaffirm the contract after having wrecked the car?










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