Which of the Following Options Accurately Describe the Law on Incapacity

question 7

Multiple Choice

Which of the following options accurately describe the law on incapacity in light of the Mental Capacity Act 2005? Please select all that apply.

• A) A person is presumed to be of full capacity unless proven otherwise.
• B) Temporary impairments of the mind which prevent a person from making a decision for himself are able to ground a claim for incapacity.
• C) A person may be treated as being unable to make a decision if his age and appearance would lead a reasonable person to believe that he lacked mental capacity.
• D) A person who lacks the capacity to contract is exempt from paying for necessary goods and services.

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Definitions:

Forward Contract

A financial derivative contract between two parties to buy or sell an asset at a specified future date for a price agreed upon today.

Canadian Dollars

The currency of Canada, represented by the symbol CAD or C$.

Foreign Exchange Risk

The possibility of losing value due to changes in currency exchange rates.

Spot Rate

The current market price at which a particular asset, such as foreign currency, can be bought or sold for immediate delivery.