1b) Carl contracts with Lemon Cars to buy a car and pay monthly installment payments of $375. This is an example of _____.

Multiple Choice

• a liquidated debt

• forbearance

• an unliquidated debt

• promissory estoppel

• a preexisting duty

1b) The age at which most states consider someone a minor is _____ years old.

Multiple Choice

• eighteen (18)

• nineteen (19)

• twenty (20)

• twenty-one (21)

• twenty-five (25)

1c) What is the legal significance in most states when a minor misrepresents his age?

Multiple Choice

• If a competent party relies on the misrepresentation in good faith, the minor forfeits the right to disaffirm the agreement.

• The minor must restore the competent party to that party's pre-contractual position before disaffirming.

• The minor may disaffirm the contract, but the competent party has the right to sue the minor in tort and recover damages for fraud.

• The misrepresentation does not affect the minor's right to disaffirm the contract.

• The misrepresentation results in the minor receiving a return of only the monetary consideration (if any) he or she paid to the other contracting party.