Mentally Infirmed Sasha Contracts to Purchase a Piano for $2,500

question 3

Multiple Choice

Mentally infirmed Sasha contracts to purchase a piano for $2,500 in 60 monthly installment payments.Six months later she tries to void the contract on grounds of mental impairment.A court will

• A)normally void the contract without requiring anything further on Sasha's part.
• B)normally void the contract but will require Sasha to return the piano.
• C)ordinarily not void the contract unless Sasha had a court-appointed guardian at the time she entered into the contract.
• D)not void the contract unless Sasha agrees to have the court appoint a guardian for her.

---

Definitions:

Consignment-out

The process of sending goods to another party to sell on behalf of the sender, retaining ownership until the goods are sold.

Inventory Account

An account used to track the cost of goods available for sale or use, including items purchased for resale, raw materials, work-in-process, and finished goods.

Debit Balance

An accounting entry that occurs when the total of debits in an account exceeds the total of credits, which is common in asset and expense accounts.

Gross Profit

The financial measure obtained by subtracting the cost of goods sold from revenue.