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 down and promised to pay another $500 next July 3, when he reached the age of majority, the remainder to be paid in monthly installments of $250. By July 3, Larry had graduated, thanks to his passing mark in English, and 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 to Computer Heaven. The balance outstanding at the time he quit making payments was $2300, including unpaid interest. On these facts, which of the following is true?
A) If Larry doesn't pay, Computer Heaven Ltd. can sue Larry's parents because parents are liable for the debts of their minor children.
B) Because a contract with a minor is void, Computer Heaven Ltd. has never passed title and can just go get the computer, printer, paper, and program even if it has been resold to someone else.
C) 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.
D) Computer Heaven Ltd. can sue Larry for breach of contract if it sues Larry after he becomes an adult.
E) Larry had no intention of making payments after July 3, so a valid contract did not exist after that date.

Question

Quizplus · Accepted Answer

The contract with Larry is unenforceable because he was a minor at the time and therefore lacked contractual capacity. However, if he later affirms the contract after reaching the age of majority (which he can do by making payments or otherwise indicating his intent to be bound by the contract), then the contract becomes enforceable retroactively. This means that Computer Heaven Ltd. would be able to sue him for breach of contract if he fails to make the remaining payments. Choice A is incorrect because parents are generally not liable for the debts of their minor children unless they co-signed the contract or provided some other form of guarantee. Choice B is incorrect because title to the goods likely passed to Larry upon delivery, even though the contract may be unenforceable. Choice D is partially correct, but the key point is that Computer Heaven Ltd. would only be able to sue Larry if he affirms the contract after reaching the age of majority. Choice E is irrelevant because Larry's intention after July 3 does not affect the validity of the contract that was entered into before that date.

In His Last Year of High School, Larry Saw a Friend's