Oral Contracts

[Spriggosh]

i am a retail manager in bountiful, utah. a few months back, we mae a sales agreement with one of our best and loyal customers. he is 17 years old. he wanted to purhase a 300 dollar used gas powered rc car. he really wanted it but stated that he didn't have 300 on him at the time and asked if he could gradually pay it off, 50 to 100 dollars a month. we refused his request, but later agreed due to the fact that we knew him well and knew his word was good. we gave him the car and supplies and sent him on his way. he began making steady payments of 50 dollars every 2 weeks. after a few weeks and 150 dollars applied, he admitted to us that he wasn't going to be able to finish the payments and he wanted to call the whole thing off. we told him to return the car and all else back to us. he then wanted his 150 dollars back. we refused the request. now, his father and a lawyer are involved stating that legally, he has the right to his money back because of his age. Does this apply despite the fact that there was no definite 'contract?' It ws all based on his word and good will. And, do small claims courts address disputes regarding such a small amount of money? Thanks for your time.

 

[I AM ALWAYS LIABLE]

My response:

First of all, there was a contract. "I'll pay you X dollars per month, and you give me the car". When you agreed, a contract was created.

However, your mistake as a Retailer was in creating a contract with a minor. A minor can disaffirm any contract that is NOT made for the necessities of life; e.g., food, shelter, medical care. An RC car does not qualify as such. Therefore, the minor is entitled to all of his money returned, provided the car and supplies are returned to you in the same condition as he received them.

Next time, when a minor wants something from you, insist that a parent or guardian signs the receipt in your store. Then, it's binding.

Please read this entire site:

http://www.lamission.cc.ca.us/law/bus1su99/chp15out.htm

Good luck to you.

IAAL

[Edited by I AM ALWAYS LIABLE on 06-28-2001 at 02:17 PM]