Question

In Philippine civil law, the capacity to act refers to a person's ability to perform legal acts and enter into contracts. However, certain restrictions may be imposed on natural persons, limiting their capacity to act in specific situations.

In relation to this topic, consider the following scenario:

1. Juan, a 16-year-old high school student, wants to buy a car. He visits a car dealership and expresses his intention to purchase a brand new vehicle. The car dealer, upon learning Juan's age, refuses to enter into a contract of sale with him.

Based on the above scenario, answer the following question:

Is the car dealer's refusal to enter into a contract of sale with Juan valid under Philippine law? Discuss the legal basis and rationale for your answer.