Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

I need help with question number 9. Please indicate the correct answer, and it's regarding Canadian Business Law in Alberta. Fox had wanted a drum

image text in transcribed image text in transcribedI need help with question number 9. Please indicate the correct answer, and it's regarding Canadian Business Law in Alberta.

Fox had wanted a drum kit for a long time. Although he was a minor, his mom gave him $300 and he took this with some savings and made a $500 down payment on a $3,500 drum kit, which was delivered to his house the next day. The balance was to be paid over a three-year period. His mom went into the store and signed the contract as a guarantor. Fox made the first three payments, but he lost interest, and quit making his payments, then the drum kit was ruined when his basement flooded. On these facts, which of the following are true? 1) In Alberta, Fox's mother will be liable on the guarantee because she is an adult and it is signed, and these are the requirements for a guarantee. 2) If Fox's mother's guarantee is valid, she would be liable on her guarantee even if the contract with Fox is voidable. 3) Even if the contract with Fox is voidable, he will have to pay because the drum kit has been destroyed. 4) The contract with Fox is voidable by Fox because he is a minor and minors can't enter into valid contracts. 5) To determine if the contract with Fox is voidable, we have to know whether he was going to use the kit for fun, or whether he needed it, perhaps for school or work. 6) The contract with Fox is voidable by the vendor, and if the vendor ends the contract, Fox has no contractual rights in this situation. 7) Fox's mother is not vicariously liable for contracts Fox enters into. 8) Fox's mother is vicariously liable for contracts Fox enters into

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image_2

Step: 3

blur-text-image_3

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Challenging Global Finance

Authors: Elizabeth Friesen

2012th Edition

0230348793, 978-0230348790

More Books

Students also viewed these Finance questions