If a minor wants to disaffirm a contract, what must they do?

Study for the CLEP Business Law Test. Engage with flashcards and multiple choice questions, each question has hints and explanations. Prepare effectively for your exam!

In the context of a minor disaffirming a contract, the correct choice emphasizes the need for the minor to return the other party's consideration. When a minor enters into a contract, they typically have the legal right to disaffirm it due to their lack of legal capacity. This means they can void the contract without penalty.

Upon disaffirming, the minor is generally required to return any consideration they received as part of the contract, if it's still in their possession. This is to maintain a level of fairness in the transaction and to prevent unjust enrichment of the minor at the other party's expense. Essentially, the law aims to restore both parties to their original positions as much as possible.

The other choices contribute to the process but focus on aspects that are not strictly required under the law. While notifying the other party can be considered a courteous step, it is not an absolute requirement for disaffirmation. Similarly, making restitution could come into play in certain circumstances, such as if the minor has consumed or damaged the consideration received. However, the primary legal requirement is returning the consideration to effectuate the disaffirmation.

Subscribe

Get the latest from Examzify

You can unsubscribe at any time. Read our privacy policy