Haydocy Pontiac sold Jennifer Lee a used automobile for $21,552, of which $20,402 was financed with a note and security agreement.

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Haydocy Pontiac sold Jennifer Lee a used automobile for $21,552, of which $20,402 was financed with a note and security agreement.

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Haydocy Pontiac sold Jennifer Lee a used automobile for $21,552, of which $20,402 was financed with a note and security agreement. At the time of the sale Lee, age twenty, represented to Haydocy that she was twenty-one years old, the age of majority, and capable of contracting. After receiving the car, Lee allowed John Roberts to take possession of it. Roberts took the car and has not returned. Lee has failed to make any further payments on the car. Haydocy has sued to recover on the note, but Lee disaffirms the contract, claiming that she was too young to enter into a valid contract. Can Haydocy recover the money from Lee? Explain.

Explanation & AnswerSolution by a verified expert

Explanation

Proofs to support the decisions are as follows:

Based on the liabilities for misrepresentation of age, Individual J has misrepresented the age and Individual H has entered into a contract with Individual J in good faith. For this reason, Individual H has to return the automobile or its equivalent value in cash to Individual H. The consideration agreed upon by the minor has to be paid back. Individual H can recover the value of the car from the minor.
Individual J is a minor. Because of this, Individual J can disaffirm the contract in any case and need not fulfill the terms of contract. The automobile is also not a necessary object. As the automobile is a luxury object, Individual J can disaffirm.

Sample Response

The probable answers for the question are as follows:

Decision in favor of Individual H
Decision in favor of Individual J

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