Question

In his last year of high school, Larry 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 $2500. He paid $500 as a down payment and promised to pay another $500 on July 3, when he reached the age of majority, with the remainder to be paid in monthly installments of $250. By July 3, Larry had graduated, thanks to his passing mark in English, and he had no more use for the computer. Furthermore, he wanted to use his $500 birthday/graduation present for a down payment on a compact disc player and speakers. He failed to make his July 3 payment or any other payment to Computer Heaven. The balance outstanding at the time he stopped making payments was $2300, including unpaid interest. On these facts, which of the following is true?

A) Although the contract is unenforceable against Larry, if he affirms the contract after he reaches the age of majority, the seller will be able to sue him for breach of contract.
B) Computer Heaven can sue Larry for breach of contract if it sues Larry after he becomes an adult.
C) If Larry doesn't pay, Computer Heaven can sue Larry's parents because parents are liable for the debts of their minor children.
D) Because a contract with a minor is void, Computer Heaven has never passed title and can retrieve the computer, printer, paper, and program even if these goods have been resold to someone else.
E) none of the above

Answer 1

The correct answer is A: if Larry affirms the contract after reaching the age of majority, Computer Heaven can sue him for breach of contract. Contracts with minors are voidable at the minor's discretion, and become binding if they affirm the contract post-majority.

Step-by-step explanation:

Concerning the scenario where Larry failed to make payments for the computer equipment after reaching the age of majority, the correct answer is A: Although the contract is unenforceable against Larry, if he affirms the contract after he reaches the age of majority, the seller will be able to sue him for breach of contract. This is because contracts made by minors are typically considered voidable at the discretion of the minor, but they can become binding if the minor, upon reaching the age of majority, takes actions that affirm the contract. Larry's initial down payment and use of the computer to complete high school may indicate an initial affirmation, but unless he reaffirms after reaching majority, he cannot typically be held accountable for the remaining payments.

Option B is incorrect as Computer Heaven can't automatically sue Larry for breach upon him turning adult, they would need evidence of affirmation after he reached the age of majority. Option C is incorrect since parents are generally not liable for the contracts entered into by their minor children, and option D is incorrect because a transaction with a minor is voidable, not void, and thus the title may have passed unless the contract is disaffirmed by the minor.