A Contract Made by a Person Who Has Not Yet

question 27

True/False

A contract made by a person who has not yet been adjudicated to be mentally incompetent is considered void.

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Definitions:

Incorporated

The process of legally declaring a corporate entity as separate from its owners, providing legal protections and allowing for the raising of capital.

De Facto Corporation

A corporation that operates in all respects as a corporation despite not having completed the formalities required for legal recognition.

Ultra Vires

Actions or activities conducted by a corporation or its officers that lie beyond the powers granted by its charter or the laws.

Ultra Vires Contract

A contract that exceeds the powers granted to a corporation by its charter or bylaws.