Cathy Young, age 16, buys a 1973 Chevy Camaro from Mark Watson, age 23, for $400. Cathy's indulgent parents, who give her everything she wants, loaned her the money for the car. The reason for Cathy's purchase is that all her friends have cars and she feels left out without one. One week after buying the car, however, Cathy changes her mind and tells Mark that she wants to disaffirm the contract. When Mark comes to pick up the car and give Cathy her money, though, Cathy changes her mind again, telling Mark, "I'll stick by the deal." However, when Cathy's parents gave her a new car for her 17^th birthday, she finally decides to disaffirm once again. Which of the following is correct?

Question

Quizplus · Accepted Answer

Cathy is a minor (under 18 years old) and therefore has the right to disaffirm the contract. She attempted to disaffirm the contract once before but then changed her mind, which does not count as ratification. Similarly, saying "I'll stick by the deal" does not constitute ratification because it was said during negotiations and not after the fact. Additionally, the car is not a necessary item for Cathy's well-being, so she can still disaffirm the contract. Finally, while Article 2 of the UCC does state that 16 is the age of contractual capacity, this only applies to contracts for the sale of goods and does not affect Cathy's ability to disaffirm the contract as a minor.

Cathy Young, Age 16, Buys a 1973 Chevy Camaro from Mark