Percy, age 17, purchased a used mobile home from a mobile home dealer for $20,000. This price, however, is twice the reasonable value of that mobile home. Several months later, Percy wants to disaffirm the contract. If the mobile home is considered a necessary item:
A) Percy can disaffirm the contract based on the wrongful act of the dealer.
B) Percy can disaffirm the contract because the minor can live in an apartment rather than a mobile home.
C) Percy is only liable for the reasonable value of the mobile home.
D) Percy must keep the mobile home and abide by the original terms of the contract.

Question

Quizplus · Accepted Answer

Contracts involving minors are generally voidable at the option of the minor, except for contracts for necessaries, which include items essential for the minor's survival such as food, clothing, shelter, and medical services. In the case of necessaries, a minor is liable for the reasonable value of the item or service, not necessarily the contract price, especially if it's significantly higher than the item's reasonable value. Since a mobile home can be considered necessary for providing shelter, Percy would be liable for the reasonable value of the mobile home, not the inflated price he agreed to.

Percy, Age 17, Purchased a Used Mobile Home from a Mobile