Which of the Following Statements Is True Regarding Contracts Made

question 43

Multiple Choice

Which of the following statements is true regarding contracts made without legal capacity?

• A) The contracts of people who have been adjudicated insane are voidable.
• B) The duties of restoration and restitution are affected by the type of incapacity suffered.
• C) The contracts of people who are minors,insane,or intoxicated are treated the same.
• D) The contracts of people who are insane,but not adjudicated insane,are void.
• E) People who lack capacity due to adjudicated insanity are not even liable for necessaries of life.

---

Definitions:

Bodily Injury Liability

Insurance coverage that pays for injuries to others caused by the policyholder in an automobile accident.

Automobile Insurance

An insurance policy purchased by vehicle owners to mitigate costs associated with getting into an auto accident.

Insurer

A party that accepts the risk of loss in return for a premium (payment of money) and agrees to compensate the insured against a specified loss.

General Life Insurance

A type of life insurance policy that provides financial protection to the beneficiaries in the event of the policyholder's death, without specifying the cause.