50
C
ASE: 7
BACKGROUND
· The Plainti , Larry Bowling, was a 16-year-old high school student who purchased his rst car
from a used car lot owned by the Defendant, Sperry Ford Sales.
· A short time after the purchase, the car broke down and Bowling wanted to return the vehicle to
Sperry Ford Sales.
· Bowling claimed that he did not have contractual capacity to enter into the contract, and as
such, the contract was voidable thus allowing him to disa rm the contract.
· Sperry argued that because the contract was for necessities, the minor had no right to disa rm
the contract.
BEFORE YOU BEGIN
You Be the Judge!
You Be the Judge!
Capacity to Contract
In order to enter into a binding contract, each
party must have legal contractual "capacity."
To have legal capacity to enter into a contract,
each of the parties must have reached the
"age of majority." In other words, 18 years old.
Voidable Contracts
Contracts that are entered into by minors
are "voidable" at the option of the minor,
unless a parent or guardian represented the
minor at the time of the contract formation.
While minors may cancel a contract that they
entered into, the other party to the contract
does not have the same right to cancel an
otherwise valid contract.
Disaffirmance
Where a minor cancels, or disa rms, a contract
before he or she reaches 18 years of age.
Contracts for Necessities
An exception to a minor's right to disa rm
a contract is in the case of a contract for
necessities, for example, food, clothing, and
shelter. Minors cannot cancel these types
of contracts. The court looks to whether the
item, in this case a "car," is so needed by a
minor, in view of his situation in life, his social
status, and nancial position, that he could
not maintain that lifestyle without it.
Bowling v. Sperry
Minor's Capacity to Enter Into Contracts
For Evaluation Purposes Only