Contract Law Bidding and Tendering Questions

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there are 4 law questions,

the answer should be describe each situation and contain a complete analysis of the law to find the right conclusion.

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1. Carl, a minor, purchased an automobile from Flex Toyota (Toyota) on August 15, 2018. Carl executed a security agreement to finance part of the balance due on the purchase price, agreeing to pay off the balance in 30 monthly installments on the 15th of each month. On September 25, 2018, Carl turned 18, which the age of majority. Carl made 2 monthly payments after turning 18, but then decided to disaffirm the contract and stopped making the payments. Carl claimed that he may disaffirm the contract entered into when he was a minor. Is he correct? If so, what would be the effect of his disaffirmance? was 2. On May 17, 2018, Brown met with Steele, a loan officer with First Interstate Bank to discuss borrowing $50,000 from the bank to start a new business. After learning that he did not qualify for the loan on the basis of his on the basis of his own financial strength, Brown told Steele that his former employer, West, might be willing to guarantee the payment of the loan. On May 18, 2015, Steele talked to West, who orally stated on the telephone that he would personally guarantee the loan to Brown. Based on this guaranty, the bank loaned Brown $50,000. The bank sent an agreement to West for his signature, but it was never returned to the bank. When Brown defaulted on the loan, the bank filed suit against West to recover on his guaranty. Is West liable? Explain in detail.
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Explanation & Answer

Attached.

Law Question – Outline
I. Law of disaffirmance
II. Verbal agreements
III. Covenant not to compete
IV. Bidding and tendering contracts


Running head: LAW QUESTIONS

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Law Questions
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Institution

LAW QUESTIONS

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Law Questions
Question 1

According to the law of disaffirmance, a minor can avoid the contractual obligations or a
considerable time after he or she turns eighteen. Carl is legally correct to disaffirm the contract
since he entered to the contract when he was a minor without any signatory by an adult (Miller,
2012). Secondly, Carl at the time he was deciding to disaffirm was only four months after his
eighteenth birthday. The law requires the minor to decide without any coercion from an adult.
However, Carl is legally entitled to return the automobile to Flex Toyota in its current condition.
In some minority states in the United States, the minor needs to indemnify the adult (Flex
Toyota) to their original financial position before the signing of the contract. The indemnification
process i...


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