In his last year of high school, Larry, a minor, saw a friend's computer and felt that the word processing function would help him get through high school. He visited Computer Heaven Ltd. and contracted for an Apple Macintosh, printer, paper, and the program. The total cost was $4000. He paid $1800 as a down payment and promised to pay another $300 on July 3, his birthday; the remainder would be paid in monthly installments of $100. Larry made the July 3 payment and some of the monthly payments, but by then had graduated, thanks to his passing mark in English, and didn't have a use for the computer anymore. Furthermore, he wanted to save his money for a down payment on a compact disc player and speakers. When he stopped making payments to Computer Heaven, the balance outstanding was $1700. On these facts, which of the following is true?
▸ Computer Heaven can enforce the contract even though Larry is a minor because Larry has paid over half of the agreed-upon price.
▸ Computer Heaven must suffer the loss because all contracts with minors are void.
▸ Computer Heaven can sue Larry for breach of contract if it sues Larry after he reaches the age of majority.
▸ If the July 3 payment was made after he reached the age of majority, Computer Heaven can successfully sue Larry for breach of contract.
▸ Computer Heaven's only chance for any money would be if Larry accidentally causes the computer to break down. In that instance, it could sue Larry for negligence to get around the difficulties in contract law.
Quick Reply
