A Contract Entered into by a Mentally Incompetent Person Can

question 49

True/False

A contract entered into by a mentally incompetent person can be valid if the person had capacity at the time the contract was formed.

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Definitions:

Equivalent Payment

A payment amount adjusted to reflect an equivalent value under different conditions or terms.

Earn

To receive payment or reward for work performed or for the provision of goods or services.

Economic Values

The monetary, material, or assessed worth of an asset, good, or service, which is determined by the market or by individual or societal preferences.

Annual Rate

Annual rate, often used in the context of loans and investments, refers to the percentage that signifies the yearly cost of funds or the yearly return on investment.