Marty,a 16-year-old,contracted with Cream-of-the-Crop Cycles to buy an $8,000 motorcycle.He agreed to make monthly payments until the purchase price plus interest were paid in full.It is three years later and Marty has not disaffirmed the contract and has made regular payments on the cycle since turning 18.Which of the following is correct?
A)The contract is void and Marty has no obligation.
B)The contract is now voidable by Cream-of-the-Crop Cycles.
C)Marty has ratified the contract and is now bound by its terms.
D)Marty has ratified the contract but can still get a return of the payments made while he was a minor.

Question

Quizplus · Accepted Answer

Marty has ratified the contract by continuing to make regular payments on the motorcycle after reaching the age of majority. He is now bound by its terms. Option A is incorrect because a contract is not automatically void because one of the parties is a minor. Option B is incorrect because Cream-of-the-Crop Cycles would only be able to void the contract if Marty had not ratified it. Option D is incorrect because once Marty has ratified the contract, he cannot get a return of payments made while he was a minor.

Marty,a 16-Year-Old,contracted with Cream-Of-The-Crop Cycles to Buy an $8,000 Motorcycle