Question

In his last year of high school, Larry, a minor, saw a friend's computer and felt that the word processing function would help him get through high school. He visited Computer Heaven Ltd. and contracted for an Apple Macintosh, printer, paper, and the program. The total cost was $4000. He paid $1800 as a down payment and promised to pay another $300 on July 3, his birthday; the remainder would be paid in monthly installments of $100. Larry made the July 3 payment and some of the monthly payments, but by then had graduated, thanks to his passing mark in English, and didn't have a use for the computer anymore. Furthermore, he wanted to save his money for a down payment on a compact disc player and speakers. When he stopped making payments to Computer Heaven, the balance outstanding was $1700. On these facts, which of the following is true?

A) Computer Heaven must suffer the loss because all contracts with minors are void.
B) Computer Heaven can enforce the contract even though Larry is a minor because Larry has paid over half of the agreed-upon price.
C) Computer Heaven can sue Larry for breach of contract if it sues Larry after he reaches the age of majority.
D) If the July 3 payment was made after he reached the age of majority, Computer Heaven can successfully sue Larry for breach of contract.
E) Computer Heaven's only chance for any money would be if Larry accidentally causes the computer to break down. In that instance, it could sue Larry for negligence to get around the difficulties in contract law.

Answer 1

The correct answer is D) If the July 3 payment was made after he reached the age of majority, Computer Heaven can successfully sue Larry for breach of contract.

Step-by-step explanation:

The correct answer is D) If the July 3 payment was made after he reached the age of majority, Computer Heaven can successfully sue Larry for breach of contract.

According to the law, contracts made by minors are generally voidable, meaning they can choose to disaffirm the contract and avoid any liability. However, there is an exception known as 'necessaries,' which are essential items that a minor needs to live. The determination of whether an item is a necessary depends on the individual circumstances. In this case, a court may consider a computer and word processing program to be a necessary for a high school student.

Since Larry has paid the down payment, made the July 3 payment, and some of the monthly payments, he may have ratified the contract and become bound by its terms. Additionally, if the July 3 payment was made after Larry reached the age of majority, the contract would be enforceable, and Computer Heaven could sue Larry for breach of contract if he stopped making payments.