Contract Law problem cases. Kamil want to sell his laptop with his friend Sam. Sam agrees to buy the laptop at the price of $500, and pays Kamil. Kamil later discovers the laptop could have been sold at a higher price

Authors Avatar

There are three separate issues in this topic .now; I will discuss every issue below.

No 1

Issue

Kamil Mcelory is a 17- year old student as a minor. He and Michael signed an agreement that he bought the Kenwood Excelon DNX9140 high performance multimedia DVD for $1500 and paid in three instalments of $500 each. However, Kamil pays the first two instalments and fails to pay the final instalment.

The main issue is whether the agreement between Kamil and Micheal is a binding contract or not.

Rules

This case involves:

Capacity to contract: the capacity of certain individuals and entities to enter into legal contracts may be affected .The following individuals may not have the required legal capacity to contract:

·Minors

·Drunkards

·Bankrupts (T. Ciro and V. Goldwasser, 2006, p85.)

Contract law: A contract is an exchange of promises between two or more parties to do, or refrain from doing, an act, which resulting contract is enforceable in a court of law. (Law article, 17th Jan 2010

 

Contact for necessaries: necessaries are defined as goods suitable to the condition in life of a minor and to their actual requirements at the time of such sale and delivery. (T. Ciro and V. Goldwasser, 2006, p.86)

Verbal agreements do not form a contract to some extent. In this case , they have agreement ,but the Kamil is a minor and sound equipment is not necessaries for him ,so there is no contract .

Argument  

From the point of the view of Mamil Mcelroy, he is a minor and promised to purchase Michael‘s Kenwood Excelon DNX9140 sound equipment. Besides, they make a deal that Kamil will pay for the equipment in three instalments. But Kamil is a minor ,the Contracts for beneficial services says if the contract of service provide a benefit to minor ,the minor will have sufficient capacity to form a vaild contract .if not ,the contract will not be vaild (T. Ciro and V. Goldwasser, 2006, p.87).First of all ,Kamil is a minor ,he does not has fully capacity to sign a contract .Secondly , the  DNX9140 sound equipment is not necessary good for Kamil .Thirdly ,Kamil cannot get benefit from this .Therefore ,the agreement between Kamil and Michael was not valid ,Kamil did not has the capacity to contract .

Join now!

However, Michael sold sound equipment to Kamil; he said that most young people go for less costly car sound equipment which is more affordable. Because of his words, Kamil intend to buy his goods. In a sense, Michael’s words stimulated Kamil, so the agreement could not be a contract.

Conclusion

In summary ,Kamil is under 18 , does not has fully capacity ,and the DNX9140 high performance multimedia DVD is not important as necessary goods such as food ,housing ,education .Besides ,Kamil cannot get any benefit from the trading . Based on the analysis above, the contract between ...

This is a preview of the whole essay