Final answer:
Jose, a minor, may disaffirm his contract to sell his car, potentially allowing him to recover it from Purchaser if certain legal conditions are met. The Buyer's obligation to refund the Purchaser depends on state laws and other circumstances such as whether the Purchaser was aware of the minor's right to disaffirm the contract.
Step-by-step explanation:
Whether Jose can recover the car from Purchaser and if the Buyer must refund Purchaser's money depends on state laws regarding contracts with minors. Generally, contracts entered into by minors, which is what infancy refers to in legal terms, are voidable at the minor's discretion. This means that Jose, because he is 16 years old and considered a minor, may have the right to disaffirm his contract and recover his car. However, the rights of the Purchaser may be protected if they are considered a bona fide purchaser for value, who bought the vehicle without knowledge of Jose's age or that he had disaffirmed the contract. If the Purchaser knew or should have known of Jose's age or that he disaffirmed the contract with the Buyer, Jose's right to disaffirm may allow him to recover the car. As for the Buyer whom Jose sold the car to originally, they might be obliged to return the purchase money to the Purchaser if the contract is successfully disaffirmed, depending on the laws of the jurisdiction.