Halbman sued Lemke for the return of his consideration, and Lemke countersued for the amount still owed on the contract. Decision?  

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Halbman sued Lemke for the return of his consideration, and Lemke countersued for the amount still owed on the contract. Decision?  

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Halbman, a minor, purchased a used car from Lemke for $11,250. Under the terms of the contract, Halbman would pay $1,000 down and the balance in $125 weekly installments. Upon making the down payment, Halbman received possession of the car, but Lemke retained the title until the balance was paid. After Halbman had made his first four payments, a connecting rod in the car’s engine broke. Lemke denied responsibility, but offered to help Halbman repair it if Halbman would provide the parts. Halbman, however, placed the car in a garage where the repairs cost $637.40. Halbman never paid the repair bill.
 
Hoping to avoid any liability for the vehicle, Lemke transferred title to Halbman even though Halbman never paid the balance owed. Halbman returned the title with a letter disaffirming the contract and demanded return of the money paid. Lemke refused. Because the repair bill remained unpaid, the garage removed the car’s engine and transmission and towed the body to Halbman’s father’s house. Vandalism during the period of storage rendered the car unsalvageable. Several times Halbman requested Lemke to remove the car. Lemke refused. Halbman sued Lemke for the return of his consideration, and Lemke countersued for the amount still owed on the contract. Decision?

Explanation & AnswerSolution by a verified expert

Explanation

Individual H, being a minor, does not have the capacity to enter into the contract. The contract of sale entered into is considered to be void, thereby making the obligations that bound Individual H to perform under the contract void. Individual H needs to return the car as received or compensate for the damage to the property if deemed responsible. Individual H has disaffirmed the contract in the expressed statement.

Sample Response

Decision will in favor of Individual H. Individual H has the privilege to disaffirm the contract as the agreement was to buy am automobile, which is not a necessary object but a luxury object for Individual H. Individual H can recover the amount paid in previous installments to Individual L. The contract is void, making the liability of Individual H to Individual L not obligatory.

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