A 17-year-old entered into a contract with a car dealership to purchase a used car. The dealership was aware of the individual's age. Two weeks later, the car suffered mechanical issues, and the minor contacted the dealership to rescind the contract and request a refund of the purchase price. Which of the following BEST describes the minor's rights under contract law?
A minor cannot rescind a contract if they voluntarily entered into the agreement.
A minor has the legal right to disaffirm the contract, rescind the agreement, and recover the money paid.
The dealership is entitled to enforce the contract because the car was transferred and used by the minor for two weeks.
The dealership is entitled to keep part of the purchase price to account for the car's usage but must refund the remainder.
The correct answer reflects the long-standing legal principle that contracts entered into by minors are generally voidable at the minor's discretion. This means that the minor has the right to disaffirm the contract, rescind the agreement, and recover the money paid, even if the minor used the car before rescinding. The doctrine exists to protect minors from the consequences of agreements that they may lack the capacity to understand, except in cases where the contract is for necessities.
The remaining answers are incorrect for the following reasons: The dealership cannot enforce the contract simply because the car was transferred and used (answer B), as the law prioritizes the minor's rights over the dealership's interests. Similarly, suggesting the dealership is entitled to keep part of the purchase price (answer C) misrepresents the protections provided to minors. Finally, while voluntariness may affect the enforceability of agreements in some contexts, in contract law, minors are protected regardless of whether they voluntarily entered the agreement (answer D).
Ask Bash
Bash is our AI bot, trained to help you pass your exam. AI Generated Content may display inaccurate information, always double-check anything important.
Why are contracts entered into by minors generally voidable?
Open an interactive chat with Bash
What happens if a minor disaffirms a contract they actively benefitted from?
Open an interactive chat with Bash
What qualifies as a necessity in a contract with a minor?
Open an interactive chat with Bash
Multistate Bar Examination
Contracts
Your Score:
Report Issue
Bash, the Crucial Exams Chat Bot
AI Bot
Loading...
Loading...
Loading...
Pass with Confidence.
Bar Prep Package
You have hit the limits of our free tier, become a Premium Member today for unlimited access.
Military, Healthcare worker, Gov. employee or Teacher? See if you qualify for a Community Discount.
3 Month Pass
$299.99
$99.99/mo
One time purchase of $299.99, Does not auto-renew.
BEST DEAL
Lifetime Pass
$399.99
One time purchase, Good for life.
What You Get
All Bar Prep Package plans include the following perks and exams .