Which of the Following Is Untrue Regarding the Contracts of Incompetent

question 3

Multiple Choice

Which of the following is untrue regarding the contracts of incompetent persons?

• A) An incompetent person is liable for necessaries.
• B) Unlike a minor, an incompetent person can never ratify a contract.
• C) To avoid a contract, a person need not be permanently incompetent.
• D) Under the cognitive ability test, a person is incompetent if he is unable to understand the nature and effect of his act.

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Definitions:

Banking Crisis

A financial situation in which banks suffer a sudden loss of solvency, leading to a lack of confidence among depositors, potential bank runs, and a collapse in the banking sector.

Federal Reserve Board

The governing body of the Federal Reserve System, the central banking system of the United States, responsible for setting monetary policy and overseeing the nation's banking system.

Discount Rate

The interest rate charged by central banks for short-term loans to commercial banks, influencing monetary policy and the economy.

Urban School Systems

Educational institutions and organizational structures designed to serve students in densely populated urban areas.