Contracts by Minors. Smith purchased a car on credit from Bobby Floars Toyota, Inc, a month before his eighteenth birthday. Smith made regular monthly payments for eleven months but then returned the car to the dealer and made no further payments on it

The dealer sold the car and sued Smith to recover the difference between the amount obtained by the sale of the car and the money Smith still owed to the dealer. Smith refused to pay on the ground that he had been a minor at the time of purchase and had disaffirmed the contract after he had reached the age of majority. Will the car dealer succeed in its claim that the ten monthly payments made after Smith turned eighteen constituted a ratification of the purchase contract? Discuss.

Contracts by minors
Yes. Contracts of a minor are voidable at any time during minority or within a reasonable time after reaching the age of majority. What will be deemed a reasonable period of time by the courts depends on the facts in a particular case. Generally, however, it should be a sufficient amount of time to allow the minor, upon reaching the age of majority, to determine whether he or she will affirm or disaffirm the contractual obligation. In this case, the court held that since the contract was for the sale of personal property that was constantly depreciating in value, the minor had waited too long before attempting to disaffirm the contract. In this instance, ten months was deemed an unreasonable period of time. The fact that Smith made ten monthly payments after reaching the age of majority was strong evidence that Smith had ratified the contract, and the court so held.