Enforceable contract Study

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National American University, Rapid City *

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3100

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Law

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Feb 20, 2024

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docx

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3

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1 Assignment 04.1: Case Scenario Analysis Maximo D. Madera National American University LA3100-01: Business Law 1 R. Winters January 27, 2024
2 Scenario 1: Kevin Green and Star Chevrolet Kevin Green was a minor at the time that he entered the contract with Star Chevrolet. The contract did have all three elements necessary to become a valid contract. It had an offer, acceptance, and consideration. However, this contract is not enforceable because Kevin did not have the capacity to enter into a contract. Kevin was 16 years old at time that he entered into the contract. This would make his contract voidable if he chooses to disaffirm the contract. Kevin has the right to disaffirm the contract until he reached legal age. Both parties though would be required to return the consideration that was paid and received when the contract was formed. Minors would also have the obligation to restore the other party to the position they were in prior to entering into a contract. “This can involve compensating the other party for any losses or damages incurred as a result of the disaffirmance” (FasterCapital.com, 2023). In most states, if he cannot return the consideration, he would still be entitled to get his money back. Scenario2: Dane Pi and Ellsworth Air Force Base At the time that Dane signed the waiver, he was a minor. As a minor, Dane did not have the capacity to enter into a contract. Waivers are contracts that state that the individual is aware of the risks associated with the activities they are engaging in. “The rule in contract law which states that minors are not bound by contracts is applicable to waivers as well” (Schoepfer, 2000). This would mean that Dane would be able to disaffirm the liability waiver that he signed to go to the Air Force Base and participate in the confidence building course. In order for the waiver to be considered legal and enforceable, Dane’s parents would have had to sign the waiver. Dane would not have the mental competency to fully understand the risks and to sign the waiver on his own. Since Dane lacks the capacity to enter into the contract, he does have the right to disaffirm the liability waiver.
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