On May 7, Roy, a minor, a resident of Smithton, purchased an automobile from Royal Motors,...

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Accounting

On May 7, Roy, a minor, a resident of Smithton, purchased anautomobile from Royal Motors, Inc., for $18,750 in cash. On thesame day, he bought a motor scooter from Marks, also a minor, for$750 and paid him in full. On June 5, two days before attaining hismajority, Roy disaffirmed the contracts and offered to return thecar and the motor scooter to the respective sellers. Royal Motorsand Marks each refused the offers. On June 16, Roy brought separateappropriate actions against Royal Motors and Marks to recover thepurchase price of the car and the motor scooter. By agreement onJuly 30, Royal Motors accepted the automobile. Royal then filed acounterclaim against Roy for the reasonable rental value of the carbetween June 5 and July 30. The car was not damaged during thisperiod. Royal knew that Roy lived twenty-five miles from his placeof employment in Smithton and that he would probably drive the car,as he did, to provide himself transportation. Decision as to
Roy's action against Royal Motors, Inc., and its counterclaimagainst Roy; and
Roy's action against Marks?

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4.4 Ratings (669 Votes)

Roy a minor had the right to disaffirm the contract for the purchase of the automobile if it is a nonnecessary On the other hand if the car is considered a necessary Roy would be liable for the reasonable value of the automobile unless Royal allows Roy to disaffirm Here since Royal accepted the return of the automobile it may have See Answer

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