Contracts and Sales Multistate Bar Practice Exam

What happens to the benefits received by a minor upon disaffirmance of the contract?

1. They must keep everything without consequence

2. They need to return what they received if still in existence

3. They must pay a penalty to the other party

4. They can choose which parts to return

The correct answer is: They need to return what they received if still in existence

The correct understanding is that when a minor disaffirms a contract, they are generally required to return any benefits or things received under that contract, as long as those items are still in existence. This rule is rooted in the principle that while minors have the right to disaffirm contracts to protect them from their inability to fully understand the legal implications, it is also important to ensure fairness. When a minor disaffirms a contract, they don’t have to pay for what they received, but they must return the property or benefits still in their possession. This responsibility encourages accountability and prevents unjust enrichment. If the minor has consumed or destroyed the item, they are not typically held liable for its value. This principle is designed to balance the protections afforded to minors with the interests of the other contracting party. In contrast, other options suggest unfair consequences or responsibilities that do not align with the legal framework surrounding contracts involving minors, which aims to shield them from exploitation.