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.One month later, Percy wishes to disaffirm the contract.If the mobile home is considered a necessary, then:
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 must keep the mobile home but 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

If the mobile home is considered a necessary, Percy can disaffirm the contract but still must pay the reasonable value of the mobile home. In this case, since the reasonable value of the mobile home is $10,000 (half of the purchase price), Percy can keep the mobile home but will only be liable for $10,000, not the full $20,000 he paid for it.

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