Question

Caroli, who was 17 years old, signed an agreement to buy a used computer from Egan for $150. While Caroli was on his way to pick up the equipment, Egan got an offer for $250 from someone else. When CAroli arrived with the money to complete the transaction, Egan told him he was unwilling to go through with the agreement because Caroli was a mior.

a. Can Egan cancel the contract?
b. Is this a voidable contract?
c. Can Caroli cancel the contract?
d. If Egan sells the computer to Caroli, can Caroli later return the computer?

Answer 1

See below

Step-by-step explanation:

a. Can Egan cancel the contract.

No. In the United states, adults who contract with minor are bound to the contract. Only the minor may disaffirm the contract.

b. Is this a voidable contract.

Yes it is. It is voidable in the scenes that it can be affirmed or rejected by one of the parties to the contract, in this case the minor - Caroli

c. Can Caroli cancel the contract.

Yes, he can. This is because he has not attained the statutory age - 18 years, hence a minor. This may however be challenged if it is the minor partial performs that term of the contract and its shown to understand that terms

d. If Egan sells the computer to Caroli, can Caroli later return the computer.

Yes. In this case, it shows that the minor - Caroli has disaffirm the contract, hence must return the computer to Egan.