Contracts Created by an Intoxicated Person May Be Voidable by That

question 276

True/False

Contracts created by an intoxicated person may be voidable by that person because he only had partial capacity to contract.

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Definitions:

Marginal Decision Maker

is an individual or entity that makes choices based on the additional cost or benefit of the next unit of consumption or production.

Comparative Advantage

The ability of an entity to produce a good or offer a service at a lower opportunity cost than others, leading to more efficient trade.

Opportunity Cost

The value of the next best alternative forgone as a result of making a decision to pursue a certain action.

Absolute Advantage

The ability of an entity to produce more of a good or service with the same amount of resources, or the same amount of a good or service with fewer resources, than competitors.