Question

Marty,a 16-year-old,contracted with Cream-of-the-Crop Cycles to buy an $8,000 motorcycle.He agreed to make monthly payments until the purchase price plus interest were paid in full.It is three years later and Marty has not disaffirmed the contract and has made regular payments on the cycle since turning 18.Which of the following is correct?
A) The contract is void and Marty has no obligation.
B) The contract is now voidable by Cream-of-the-Crop Cycles.
C) Marty has ratified the contract and is now bound by its terms.
D) Marty has ratified the contract but can still get a return of the payments made while he was a minor.

Answer 1

Answer:

C) Marty has ratified the contract and is now bound by its terms.

Explanation:

Ratified Contract : This refers to a contract in which the terms have been agreed upon by all parties involved but has not yet been fully executed, signed, and delivered. The typical steps in the contract process include the offer, acceptance, consideration, and ratification. So, in the case of Marty, the contract has been ratified and she is bound by it terms.