Carmen Ruiz is 17 years old and works in an office supply store. Carmen purchase
ID: 1163861 • Letter: C
Question
Carmen Ruiz is 17 years old and works in an office supply store. Carmen purchased a car as part of a purchase contract with Joe's AutoPlex. Joe's AutoPlex sued Carmen after she failed to meet the requirements of the purchase contract. Carmen had every intention to make her payments under the contract, but she lost her job and had no money. She purchased the car because she needed reliable transportation to and from work. Her father and mother were unable to provide her with transportation and that is why Carmen purchased the car. Carmen asked the court to dismiss the car dealer's case because she is a minor.
With respect to necessaries of life, do you think that Carmen should be liable for the purchase price of the car? Explain your response.
How could Joe's AutoPlex avoid situations like this in the future?
Explanation / Answer
Minors are believed to lack the capacity to contract. Therefore, courts provide minors with the ability to exit the contract at the minor’s discretion. Necessaries of life include items and services that are necessary to the minor’s health and safety, such as food, shelter and clothing. In some instances, automobiles are considered necessaries. The minor’s and his or her parents economic status can be considered in determining whether an item is considered a necessary. In this case her parents were unable to provide her with transportation, therefore she purchased a car and she was also willing to make her payments under the contract but since she lost her job, she was unable to pay. Her parents can't also support her to make the payments, therefore she should not be held liable for the purchase price of the car. In order to void the contract, Carmen must return the car to Joe's AutoPlex.
Joe's AutoPlex can avoid such situations in future by not entering into contracts with minors. Minor's contract are voidable, it allows minors the option to disaffirm or cancel most contracts they have entered into. It is for this reason that most businesses are reluctant to enter into contracts with minors. But courts encourage businesses to contract with minors for necessaries of life such as food, clothing, and shelter. A minor may still disaffirm a contract for a necessary but is liable for the value of the necessaries consumed under quasi-contract law theory. Businesses are thus allowed to recover the reasonable value of the necessaries provided to the minor.