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Reid was 17 years old when he finished high school early and enrolled in Western State University, located 200 miles from his home. He took a job as a barista at a local coffee bar part-time in order to earn enough income to be self-supporting. He bought a used car, signing a contract to pay for it over 24 monthly installments. He also signed a 6-month lease to rent a one-bedroom apartment. After four months, and just one week before his eighteenth birthday, Reid drove the car into a tree, totaling it, after allowing his insurance to lapse. He then moved out of his apartment and into a friend's apartment. At the time he moved out, Reid was one month past due on his rent. Reid wants to disaffirm the used car loan and the apartment lease.
Answer each of the following:
1. Is Reid entitled to disaffirm the car loan? Why or why not?
2. Is Reid entitled to disaffirm the apartment lease? Why or why not?
3. If Reid disaffirms any contracts, how long does he have to do so?
4. Does Reid owe any portion of the amounts on the car lease or the apartment lease? If so, how much?
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