Which of the following is true regarding the obligation of a minor on disaffirmance?
A)In all states,a minor must return any consideration in his control,but he or she is entitled to a full refund of any purchase price regardless of the condition of the consideration when returned.
B)In all states,a minor is entitled to a full refund without returning consideration.
C)In all states,a minor must return any consideration in his control,must make restitution,and must pay for any loss in value of the collateral.
D)In all states,a minor only receives a return of one-half of the minor's investment.
E)The obligations of a minor on disaffirmance vary from state to state.

Question

Quizplus · Accepted Answer

The obligations of the minor on disaffirmance vary from state to state.Many states simply require the minor to notify the competent party of the intent to disaffirm and return to the competent party any consideration received under the contract that is still under the minor's control,regardless of the condition of the consideration.If the consideration has been destroyed or damaged,the minor returns what is left of it,and the other party has no recourse against the minor under most circumstances.A number of states,however,have modified the duty of the minor on disaffirmance,holding that the minor has a duty of restitution that requires her or him to place the competent party back in the position that party was in at the time the contract was made.

Which of the Following Is True Regarding the Obligation of a Minor