When Sheila is 16 years old (a minor),she enters into a contract to purchase an automobile costing $20,000 from Brian,a competent adult.Brian asks for verification of her age,and Sheila promptly provides him a fake driving license in which her age is misrepresented.Brian delivers ownership of the automobile to Sheila after he receives the payment of $20,000.Subsequently,before Sheila reaches the age of 18 (the age of majority),she is involved in an automobile accident caused by her own negligence.The automobile sustains $7,000 worth of damage in the accident (the automobile is now only worth $13,000).If Sheila disaffirms the contract and returns the damaged vehicle to Brian,he has to pay her ________.
A) $20,000
B) $10,000
C) $7,000
D) $13,000

Question

Quizplus · Accepted Answer

Brian has to pay Sheila $13,000, which is the current value of the automobile after the accident. When a minor disaffirms a contract, they are typically required to return the received property in its current condition, and the adult party is required to return any payment made by the minor. Since the car is now worth $13,000, that is the amount Brian would have to refund Sheila.

When Sheila Is 16 Years Old (A Minor),she Enters into a Contract