Mike Minor buys some real estate for investment purposes. The contract obligates Mike to make monthly installment payments for ten years. Mike reaches the age of majority one month after making the contract. After this, Mike makes 25 monthly payments under the contract, but then decides that he wants to rescind (disaffirm) the deal. Which of the following is most true?

a. Mike can disaffirm. b. Mike cannot disaffirm because contracts for the sale of land can only be disaffirmed before the age of majority. c. Mike cannot disaffirm because contracts for the sale of land must be disaffirmed within one year of the age of majority. d. Mike cannot disaffirm because he has already ratified the contract.

Question

Pork Chop

Business

13 April, 18:34

Mike Minor buys some real estate for investment purposes. The contract obligates Mike to make monthly installment payments for ten years. Mike reaches the age of majority one month after making the contract. After this, Mike makes 25 monthly payments under the contract, but then decides that he wants to rescind (disaffirm) the deal. Which of the following is most true?

a. Mike can disaffirm. b. Mike cannot disaffirm because contracts for the sale of land can only be disaffirmed before the age of majority. c. Mike cannot disaffirm because contracts for the sale of land must be disaffirmed within one year of the age of majority. d. Mike cannot disaffirm because he has already ratified the contract.

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Answers (1)

Know the Answer?

Kyan · Answer 1

A) Mike can disaffirm.

Explanation:

Since Mike was a minor when he signed the contract, that means that the contract is voidable.

A voidable contract can be invalidated if one party decides to void it. Voidable contracts are legal unless they are voided.

In this case, Mike can decide to void this contract since he was a minor and it is illegal for a minor to engage legal contracts.