Scenario 2: At the end of the summer, Jeremy Atwater earned enough money to put down payment on a car. He decides to continue working part-time during school to earn money for the car payments. Jeremy purchased a car from Smooth Sales Used Cars. Smooth did not ask Jeremy how old he was; the salesman assumed he reached the age of majority. Jeremy paid the down payment and signed a contract stating that he would make payments of $200 each month. Six months later, Jeremy lost his job and could no longer make the payments. Jeremy took the car to Smooth and said he wanted to cancel the contract, and that he wanted his money back. What are the possible outcomes? Compare and contrast potential legal and equitable remedies.
There was no contract formed between Jeremy Atwater and Smooth Sales Used Cars. According to the law a minor cannot enter into a valid contract. The only exception to this rule is when a minor enters into a contract for necessities. The car is not a necessity for Jeremy Atwater, and the legal perspective Smooth Sales Used Cars should take back the car from Jeremy Atwater and return the money to Jeremy.
The responsibility of Smooth Sales Used Cars is to make certain that Jeremy Atwater has reached an age of maturity before entering into a contract with Jeremy Atwater. Smooth Sales Used Cars did not take reasonable care before entering into a contract with Jeremy Atwater. There are different possible outcomes: One of three possible options is that Smooth Sales Used Cars should return the money to Jeremy Atwater and take back the car as Jeremy Atwater is asking them to do. The second option is that Smooth Sales Used Cars may take back the car and charge for the use of the car for a period of six months and return the balance money to Jeremy Atwater. The third option is that Smooth Sales Used Cars may refuse to take back the car and insist that Jeremy Atwater or his parents and guardians should pay the balance amount of money due.