A minor,unable to live at home,contracts to rent an apartment for one year at $800 per month.After living there for three months,he disaffirms the contract.The reasonable value of that apartment was only $700 per month.Assuming no rent has been paid,the minor must pay:
A) nothing, because the contract has been disaffirmed.
B) $2,400, which is the contract rate for three months.
C) $2,100, which is the reasonable value for three months.
D) $9,600, which is the contract rate for the one-year lease term.
E) $8,400, which is the reasonable rate for the one-year lease term.

Question

Quizplus · Accepted Answer

When a contract is disaffirmed by a minor, it means that they are canceling the contract and are released from any obligations under it. However, the minor will still be responsible for paying the reasonable value of any goods or services received before the disaffirmation. In this case, the minor lived in the apartment for three months and must pay for the reasonable value of the apartment during that time, which is $700 per month. Therefore, the minor must pay $2,100 (3 months x $700) for the time they lived in the apartment. Option A is incorrect because even though the contract has been disaffirmed, the minor is still responsible for paying the reasonable value of the apartment. Option B is incorrect because it only considers the contract rate, which is not relevant after disaffirmation. Option D and E are incorrect because they consider the one-year lease term, which is not relevant after disaffirmation.

A Minor,unable to Live at Home,contracts to Rent an Apartment