Which type of contract can a minor disaffirm without being liable for the reasonable value of goods or services?

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!

A minor generally has the legal right to disaffirm contracts they enter into, reflecting the principle of protecting minors from their inexperience and lack of judgement. This right allows a minor to void most contracts without the penalty of being liable for the reasonable value of goods or services received.

In the case of a contract to purchase a pickup truck, it falls under a category of contracts that minors can disaffirm. The law recognizes that such contracts do not fit the definition of "necessaries," which would typically include items essential for living, such as food, clothing, and shelter. Because the pickup truck is not classified as a necessary, the minor can disaffirm the contract without owing compensation for the value received.

In contrast, a contract for necessaries typically requires a minor to pay for the value of goods or services because they are essential for their well-being. Student loan contracts often have specific legal obligations and protections that might not allow for disaffirmation without consequences. Likewise, if a minor misrepresents their age, they may face different standards under the law which can affect their right to disaffirm the contract. Therefore, the purchase of a pickup truck is the correct answer as it illustrates the rule allowing disaffirmation without liability in the context of a

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