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Colt1911 [192]
3 years ago
11

Helen, age 17, wanted to buy a motorcycle. She did not have the money to pay cash but persuaded the dealer to sell a cycle to he

r on credit. The dealer did so partly because Helen said that she was 22 and showed the dealer an identification card that falsely stated her age as 22. Helen drove the motorcycle away. A few days later, she damaged it and then returned it to the dealer and stated that she voided the contract because she was a minor. The dealer said that she could not do so because (a) she had misrepresented her age and (b) the motorcycle was damaged. Can she void the contract
Business
1 answer:
Veseljchak [2.6K]3 years ago
5 0

Answer:

Yes

Explanation:

Yes, based on the information given SHE CAN VOID THE CONTRACT due to FALSELY MISREPRESENTATION of her age from her real age of 17 to the false age of 22 to the dealer of the motorcycle which therefore means that she have to pay for the motorcycle damages cause by her reason been that only the person who initiated the contract CAN VOID THE CONTRACT due to the fact that its fraudulent.

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Explanation:

The Journal Entry from July 1 and July 31 is shown below:-

1. Cash Dr,                                             $560

            To Deferred revenue                                  $560

(Being cash is received)

2. Deferred revenue                             $336

            To Sales revenue                                         $336

(Being 12 months sales service is recorded)

3. Cost of goods sold                            $280

            To Inventory                                                 $280

(Being cost of goods sold is recorded)

4. Deferred revenue ($336 ÷ 12)            $28

            To Service revenue                                      $28

(Being Deferred service revenue is recorded)

Working Note:-

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3 0
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7 0
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