Which of the Following Is True of a Contract Where

question 26

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 only 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.

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Definitions:

IPO

An Initial Public Offering (IPO) is the process through which a private company goes public by selling its shares to the public for the first time.

Allocation of Shares

The process of distributing shares of stock among investors.

Oversubscribed

A situation in which the demand for an IPO or a new issue of securities exceeds the number of shares available.

Rights Offering

A method by which a company raises capital through issuing new shares to existing shareholders at a predetermined price for a fixed period.