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.

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Definitions:

Consideration

Something of value that is exchanged between parties in a contract, which is necessary for the agreement to be legally binding.

Gift

Something given voluntarily without payment in return, often as a symbol of affection or goodwill.

Contract

An agreement between multiple parties that is recognized and can be enforced by the legal system.

Promissory Estoppel

A legal principle that prevents a party from withdrawing a promise made to a second party if the latter has reasonably relied on that promise to their detriment.