Question

Miguel, a 16-year-old student, entered into a contract to purchase a car from Ricardo, a car dealer. However, Miguel later realized that he made a mistake and no longer wants to proceed with the purchase. He approaches Ricardo and informs him about his decision to void the contract. Ricardo refuses to cancel the contract, arguing that since Miguel is a minor, he lacks the capacity to enter into a binding contract. Miguel seeks legal advice.

Based on the given scenario, discuss the following:

1. Can Miguel disaffirm the contract as a minor? Explain the legal basis for your answer.
2. What are the restrictions imposed on the capacity to act of a minor when entering into contracts? Cite the relevant provisions of the Civil Code.
3. Assuming the contract is valid and binding, what are the consequences if Miguel fails to fulfill his obligations? Discuss the possible remedies available to Ricardo under Philippine law.