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A seller mailed a letter to a potential buyer on January 15 offering to sell her house for $525,000. The letter was delivered on January 17. The buyer mailed a letter to the seller on January 19 stating that she accepted the seller’s offer.
Title was passed, and the buyer paid the contract price on May 1. The house was destroyed by fire on June 1. The buyer did not reach her majority until September 1.
Which of the following best describes the buyer’s obligations under the contract?
(A) The buyer could not disaffirm the contract between June 1 and September 1 because she could not restore the consideration.
(B) The contract between the seller and the buyer is void.
(C) The buyer could disaffirm the contract on September 2.
(D) The buyer could not disaffirm the contract after May 1.
The Answer is : C.
The buyer may disaffirm the contract within a reasonable time after reaching majority, even though the contract has been fully performed. Therefore, (D) is not the best answer. As for choice (A), while if she could restore the consideration she would be required to do so, the fact that the buyer cannot is immaterial here where the property has been destroyed. Finally, the contract is not void, but voidable, and, therefore, choice (B) is incorrect.
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