Question

Alice, age 17, purchased a 2005 Kia auto at the Tempe Autoplex. After driving the vehicle for three months, Alice returned to the Autoplex for her money. She did not, however, have the Kia. "It was stolen at school last week." Which of the following statements is true?
a. Alice may not rescind the agreement.
b. Alice may rescind the agreement only if the stolen Kia is found.
c. Alice may rescind the agreement regardless of whether she has the car.
d. none of the above

Answer 1

Answer:

c. Alice may rescind the agreement regardless of whether she has the car.

Explanation:

In this example, Alice would be able to rescind the agreement regardless of whether she has the car or not. This is because Alice entered the contract at 17, which would mean that in most states she is still considered a minor. Minors are considered to lack the ability to enter into legally binding agreements. In the case that they do enter an agreement, this would be considered "voidable" by them.