Question

Scenario 1:

Julia, a 16-year-old high school student, entered into a contract to purchase a car from a car dealer. After a few days, Julia changed her mind and decided that she does not want to push through with the transaction. The car dealer insists that Julia must honor the contract and pay for the car, as they have already prepared the necessary documents for registration.

Discuss the capacity of Julia to enter into a contract based on the provisions of the Civil Code, particularly Arts. 37-39. Provide legal justification for your answer.

Scenario 2:

Carlos is a renowned artist who has been diagnosed with a mental condition that affects his cognitive abilities. Despite his condition, he continues to create and sell his artworks. Some people question Carlos' capacity to engage in business transactions and challenge the validity of the contracts entered into by Carlos. Analyze the restrictions on the capacity to act under the Civil Code and discuss whether Carlos' mental condition affects his capacity to engage in business transactions. Support your answer with legal provisions from Arts. 37-39 of the Civil Code.