Ken is 17 years old. He has a part-time job and decided to buy a new computer sy
ID: 395416 • Letter: K
Question
Ken is 17 years old. He has a part-time job and decided to buy a new computer system. He spoke with Beth, the authorized sales representative for MicroComp USA, and negotiated a deal to buy a computer system from MicroComp with $1000 down and payments over time for the next five years. Beth knew that Ken was 17 years old. About a week later, Beth's boss, Sarah, found out Beth had sold the system to a minor and told Beth to get the computer back and cancel the deal. So, Beth called Ken and told him that MicroComp was voiding the contract because he was a minor. Was Beth legally correct? Can MicroComp do this?
Explanation / Answer
Beth was legally incorrect to offer the plan to Ken to enter into the contract as Ken lacks capacity to enter into the contract due to his age being less than 18 years. So, Ken cannot enter into the contract of loan repayment plan and Beth made an error. Here, Beth should have taken the consent of Ken’s parent to make a legal contract to sell the computers with a given plan. So, Beth was legally correct to void the contract.
Microcomp can also not enter into the contract with Ken without the consent and signatures of his parents. So, Microcomp can cancel the contract and make it void. Further the company can either collect the computer or collect the remaining amount left for the payment.
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