solution

Bob entered into a
rental agreement with Easy Rentals for a one month lease of a motorcycle by misrepresenting
his age as being 20 when, in reality, he was only 17 years of age. The
agreement required Bob to assume responsibility for any damage to the machine
while it was in his possession. Bob rented the motorcycle to spend the month
biking with his friends.

A week after Bob
acquired the machine he lost control of the motorcycle on a sharp turn in the
road, and the machine was badly damaged in the ensuing accident.

Bob refused to pay for
the rental and damage on the basis that he had not attained the age of
majority, and was not liable in contract.

i.
Discuss the
law concerning contracts with minors, the rights of Easy Rentals and comment on
the likelihood of success if it should take legal proceedings against Bob.
Would it make any difference if Bob had rented the motorcycle for
transportation to work in order to support himself?

ii. What is a legal risk
management plan and how is it developed? How could Easy Rentals have managed
the risk?