Which of the Following Is True of a Contract with an Adjudged

question 61

Multiple Choice

Which of the following is true of a contract with an adjudged insane person?

• A) The adjudged insane person is bound by the terms of the contract.
• B) The contract is void.
• C) Only the competent party can enforce the contract.
• D) The competent party is legally obligated to uphold the contract.

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Definitions:

Cash Flow

The total amount of money being transferred into and out of a business, affecting its liquidity.

Receipts

Documentation of a transaction that provides proof of payment.

Disbursements

The act of paying out money, especially from a fund or account, for a specific purpose.

Single-entry Accounting

A simplified accounting method where transactions are recorded with a single entry, typically used by small businesses for tracking income and expenses.