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,who believes that Sheila is an adult,does not ask for verification of her age,and delivers ownership of the automobile to Sheila after he receives her 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

Sheila, as a minor, has the right to disaffirm the contract and is entitled to a full refund of the purchase price, which is $20,000, regardless of the damage to the automobile.

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