Which of the Following Is True of a Contract Where

question 79

Multiple Choice

Which of the following is true of a contract where one of the parties is insane but not adjudged insane?

• A) The contract is voidable by the competent party.
• B) The contract is only voidable by the insane person.
• C) Only the court appointed legal guardian to the insane person can modify contracts.
• D) The non-insane person must be placed in status quo if the insane person voids the contract.

---

Definitions:

Collateral

Collateral that a borrower offers to a lender to secure a loan or credit, which the lender can take possession of if the borrower fails to meet the repayment terms.

Perfection

The process or action of making something completely free from faults or as close to it as possible.

Secured Party

An individual or institution that holds an interest in a secured asset or collateral to secure repayment of a loan or other credit extension.

Collateral

Assets pledged by a borrower to secure a loan or other credit, and subject to seizure on default.