Foodmart, Inc. is a retail grocery store chain based in Any State, U.S.A. Foodmart has stores throughout the United States. Brian McDonald works as the produce manager for the store in My Town, U.S.A. Jeremy Atwater, 17 years old, is spending his summer vacation working for Brian in the produce department.
oScenario 2: At the end of the summer, Jeremy Atwater earned enough money to put a down payment on a car. He decides to continue working part-time during school to earn money for the car payments. Jeremy purchased a car from Smooth Sales Used Cars. Smooth did not ask Jeremy how old he was; the salesman assumed he reached the age of majority. Jeremy paid the down payment and signed a contract stating that he would make payments of $200 each month. Six months later, Jeremy lost his job and could no longer make the payments. Jeremy took the car to Smooth and said he wanted to cancel the contract, and that he wanted his money back. What are the possible outcomes? Compare and contrast potential legal and equitable remedies.
First there was no contract formed between Jeremy Atwater and Smooth Sales Used Cars.The reason for this is that a minor cannot enter into a valid contract. The only exception to this rule is when a minor enters into a contract for necessities (6). The car is not a necessity for Jeremy Atwater. From the legal perspective Smooth Sales Used Cars should take back the car from Jeremy Atwater and return the money to him (1).
It is the responsibility of Smooth Sales Used Cars to ascertain if Jeremy Atwater has reached an age of maturity before entering into a contract with Jeremy Atwater. In other words Smooth Sales Used Cars did not take reasonable care before entering into a contract with Jeremy Atwater.
There are several possible outcomes. The first possible outcome is that Smooth Sales Used Cars should return the money to Jeremy Atwater and take back the car as Jeremy Atwater is asking them to do. Another option is that Smooth Sales Used Cars may take beck the care and charge for the use of the car for a period of six months and return the balance money to Jeremy Atwater (5). The third option is that Smooth Sales Used Cars may refuse to take back the car and insist that Jeremy Atwater or his parents and guardians should pay the balance amount of money due (3).
If legal remedies are followed then there is no contract formed and Smooth Sales Used Cars is required to return the money its had received from Jeremy Atwater. From the equitable remedies perspective, Smooth Sales Used Cars is bound to return the money to Jeremy Atwater and take back the car, however, they may charge a sum of money (reasonable sum) for the use of the car for the period of xix months.
Normally, a minor can disaffirm a contract and walk away. In this case Smooth Sales Used Cars would be bound to pay back the money they have received. This is no food or clothing or a transaction with a bank that the minor cannot disaffirm (2). Smooth Sales Used Cars can deal with a minor only on its own risk. The law does not provide Smooth Sales Used Cars it protection. There are states that allow contracts to be enforced against minors that have lied about their age. In this case such a situation has not happened. Jeremy Atwater has not lied about his age. In several states there is a law that the person to whom the car is being sold must have a driving license. If this procedure is not followed the contract is not enforceable. the argument in this case is that Jeremy Atwater could not have had a driving license as he was underage (4). (457 words)
References:
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(2) › ... › Contracts Answers & Advice (3)wiki.answers.com/.../Can_a_minor_be_liable_for_a_legal_contract
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