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Friday, 22 March 2013

Exceptions to Minor’s Right to Disaffirm

Exceptions to Minor’s Right to Disaffirm

Misrepresentation of Age. 

§ Generally, minor can disaffirm the contract.

§ But some states prohibit disaffirmance and hold the minor liable.

Contracts for Necessaries.

§ Contracts for food, clothing, shelter may be disaffirmed by minor is liable for reasonable value of goods or services.

Insurance.

§  Not viewed as necessaries, so minor can disaffirm contract and recover all premiums paid.

Loans.

§ Seldom considered to be necessaries.

§ Exception:

    Loan to a minor for the express purpose of enabling the minor to purchase necessaries.

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