A Person Lacks Contractual Capacity If

question 41

Multiple Choice

A person lacks contractual capacity if:

• A) the person is a chronic alcoholic.
• B) the person is a drug addict.
• C) because of mental impairment, the person does not comprehend that a contract is being made or understand its consequences.
• D) the person is a minor.

---

Definitions:

Principal's Right

The authority or entitlements a principal has in a legal or contractual relationship, especially in relation to an agent acting on their behalf.

Ratify

To formally confirm or approve an act, agreement, or treaty, making it officially valid.

Fiduciary Duty

An obligation to act in the best interest of another party, typically in financial or trust relationships.

Legal Position

A stance or argument made based on laws, regulations, and case law in litigation or legal matters.