A Requirement for the Existence of an Enforceable Contract Is

question 158

Multiple Choice

A requirement for the existence of an enforceable contract is that the parties have the legal capacity to contract. Which of the following is incorrect with respect to the law of incapacity?

• A) If someone contracts with an insane person but there was no indication of mental illness, the contract can be binding.
• B) A contract by an insane person for necessities, such as food, is binding.
• C) The law governing contracts with persons intoxicated by alcohol or drugs is the same as the law governing contracts with the insane.
• D) If a mentally impaired person cannot avoid a contract on the basis of insanity, the court could still set the contract aside for being an "unconscionable" transaction.
• E) If you knew that you were negotiating a new lease, but that you weren't being as effective as you wanted to be because you had been drinking, you can have the resulting contract set aside.

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Definitions:

Dual Processing

The principle that our minds operate on two levels simultaneously—the conscious deliberate level and the unconscious, automatic level.

Reflecting Experiences

The process of thoughtfully considering one's past experiences, often to derive insights or make sense of them.

Setting Goals

The process of identifying something that you want to accomplish and establishing measurable objectives and timeframes to help you achieve it.

Dreaming

The experience of images, ideas, emotions, and sensations occurring involuntarily in the mind during certain stages of sleep.