Jim, a 16yearold, entered into a contract with Ryan. Jim agreed to purchase a motorcycle from Ryan by paying monthly installments of $1,000. Which of the following is likely to be true in this scenario?
A) The contract is invalid as Jim does not have legal capacity to enter into a contract.
B) Jim is required to fulfill the contract, but only when he turns 18.
C) Ryan can demand payment from Jim's guardian as a 16yearold is allowed to enter into a legal contract.
D) Ryan must wait till Jim turns 21 years old to require fulfillment.

Question

Jim, a 16­year­old, entered into a contract with Ryan. Jim agreed to purchase a motorcycle from Ryan by paying monthly installments of $1,000. Which of the following is likely to be true in this scenario?
A) The contract is invalid as Jim does not have legal capacity to enter into a contract.
B) Jim is required to fulfill the contract, but only when he turns 18.
C) Ryan can demand payment from Jim's guardian as a 16­year­old is allowed to enter into a legal contract.
D) Ryan must wait till Jim turns 21 years old to require fulfillment.

Quizplus · Accepted Answer

Minors under the age of 18 generally do not have legal capacity to enter into a contract, and any contract they do enter into can be voided at their discretion. Therefore, the contract between Jim and Ryan is likely invalid.

Jim, a 16­year­old, Entered into a Contract with Ryan

Jim, a 16yearold, Entered into a Contract with Ryan