Mary is a seventy-five-year-old widow who survives on her husband\'s small pensi
ID: 392013 • Letter: M
Question
Mary is a seventy-five-year-old widow who survives on her husband's small pension. Mary has become increasingly forgetful, and her family worries that she may have Alzheimer's disease (a brain disorder that seriously affects a person's ability to carry out daily activities). No physician has diagnosed her, however, and no court has ruled on Mary's legal competence. One day while she is out shopping, Mary stops by a car dealership buys a new car and signs all the paperwork. When Mary fails to return to the dealership the next day to pick up her car, the dealership calls her. Mary seems confused and repeatedly asks the dealership why they are asking about her car. Mary claims that she does not recall buying a car. Explain whether this contract is void, voidable, and/or valid. Can Mary avoid her contractual obligation to buy the car? If so, how? (The case analysis assignment for this week is worth 5 points of your overall participation grade for the course. Your answer should contain a minimum of 200 words.)
Explanation / Answer
This contract is voidable and Mary can avoid her contractual obligation to buy the car. She seemed troubled and confused when the dealership called her as she did not recall buying the car so they should understand that something is wrong and the buyer may not receive the delivery of car. In most of the cases, there is a grace period if the customer’s decision changes where if they want to cancel the contract then it can be done by deducting the booking fees or any kind of deposit or assurance fee customer paid.
Mary can come out of contract as even if the case goes to court, it would be evident from the call which dealership made that Mary was not in right state of mind. The one more biggest fact in her favour is that she is 75 years old and Judge can question the dealership about giving a loan to her and it might be perceived that she was tricked into signing the car as usually it’s not a good practice to provide loan to such an old person. She can avoid her contractual obligation to buy the car because of these facts and she can also utilise the grace period concept to get out of the contract