Jack entered into a rental agreement with Custom Rentals for a one month lease of a motorcycle by misrepresenting his age as being 20 when in fact he was only 17. The agreement that Jack signed prohibited the use of the motorcycle in any race or contest, and required Jack to assume responsibility for any damage to the bike while it was in his possession. A week after Jack rented the bike, he took it to a motorcycle race in Grand Falls-Windsor. On his way to the race, just outside Gander, he swerved to avoid hitting a moose on the highway. The motorcycle was badly damaged in the accident. (Jack only suffered a few cuts and bruises, but was otherwise fine). Jack has refused to pay for the rental and damage on the basis that he had not attained the age of majority and so was not liable in contract.

(1) Discuss the law concerning contracts with minors and whether or not Custom Rentals might be successful if they took legal proceedings against Jack.

(2) What is a Legal Risk Management plan and how is it developed? How could Custom Rentals have managed this risk?

(3) What party has the burden of proof if the matter were to proceed to trial? What is the standard of proof?