Business Law Chapter 9 Case 9.1

Case One – Chapter9 Case 9.1

I. Facts

Kalen is a seventeen-year-old minor who has just graduated from high school. He is attending a university two hundred miles from home and has contracted to rent an apartment near the university for one year at $ 500 per month. He is working at a convenience store to earn enough income to be self-supporting. After living in the apartment and paying monthly rent for four months, he becomes involved in a dispute with his landlord. Kalen, still a minor, moves out and returns the key to the landlord. The landlord wants to hold Kalen liable for the balance of the payments due under the lease.

II. Issue

Is Kalen liable for the balance of the payments due under the lease?

III. Holding

No. Kalen is not liable for the balance. He is only obligated to pay the landlord for the time he occupied or used the residence.

IV. Reasoning

First of all, contract for Necessaries justifies that Kalen is not liable for the balance of the payments due under the lease. “A minor who enters into a contract for necessaries may disaffirm the contract but remains liable for the reasonable value of the goods used. Necessaries are basic needs (food, clothing, shelter, and medical services)”.

Secondly, Kalen has expressed through words and conducts his intent not to be bound to the contract. Kalen was a minor at the time of the contract, and worked to earn money in order to support himself. Kalen contracted to rent an apartment for one year at $500 per month. Kalen paid the agreed sum of the rent for four months. Kalen involved in a dispute with his landlord after four months. He moved out and returned the keys to the landlord. Through this act, Kalen disaffirmed the contract.

Last but not least, Kalen appears to have entered a quasi contract for Necessaries when he leased the apartment for $500/month. Kalen knowingly entered this contract for necessaries (food, clothing, shelter and medical services). Although his age may disaffirm the...