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Two Weeks Before Susan's 18th Birthday, Her Father Gave Her

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Two weeks before Susan's 18th birthday, her father gave her $3,000 to purchase a car. She chose a used car from the local dealer for $2,700, and having paid cash, drove the car home. After 300 kilometres the brakes needed considerable work. She felt that it might be more prudent to use her father's money as a start to savings for a new car. Accordingly, she returned the car and the keys to the dealer along with a letter that she was repudiating the contract. She had written the letter almost a week prior to her 18th birthday but was unable to deliver the car and letter until three days after her 18th birthday. The dealer refused to refund her money, and Susan was forced to bring an action to recover her funds. Discuss the issue of capacity and repudiation that arise in this fact situation.

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