Asked by
Kristian Vives
on Nov 10, 2024Verified
A requirement for the existence of an enforceable contract is that the parties have the legal capacity to contract. Which of the following is incorrect with respect to the law of incapacity?
A) If someone contracts with an insane person but there was no indication of mental illness, the contract can be binding.
B) A contract by an insane person for necessities, such as food, is binding.
C) The law governing contracts with persons intoxicated by alcohol or drugs is the same as the law governing contracts with the insane.
D) If a mentally impaired person cannot avoid a contract on the basis of insanity, the court could still set the contract aside for being an "unconscionable" transaction.
E) If you knew that you were negotiating a new lease, but that you weren't being as effective as you wanted to be because you had been drinking, you can have the resulting contract set aside.
Legal Capacity
The ability of an individual to enter into legal agreements or contracts, often age or condition-related.
Insane Person
A legally declared inability of an individual to manage their affairs due to mental illness or incapacity.
Mental Illness
A broad category of conditions affecting mood, thinking, and behavior, often requiring medical diagnosis and treatment.
- Become familiar with the conditions that render contracts invalid due to incapacity, mental illness, or substance influence.
Verified Answer
DT
Learning Objectives
- Become familiar with the conditions that render contracts invalid due to incapacity, mental illness, or substance influence.