Which of the Following Is Untrue Regarding the Contracts of Incompetent

question 3

Multiple Choice

Which of the following is untrue regarding the contracts of incompetent persons?

• A) An incompetent person is liable for necessaries.
• B) Unlike a minor, an incompetent person can never ratify a contract.
• C) To avoid a contract, a person need not be permanently incompetent.
• D) Under the cognitive ability test, a person is incompetent if he is unable to understand the nature and effect of his act.

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Definitions:

Fringe Benefits

Nonwage compensation, mainly medical insurance, that workers receive from employers.

Demand for Labor

The total amount of labor that employers are willing and able to hire at a given wage rate in a certain period.

Marginal Revenue Product

The additional revenue generated from employing one more unit of a resource or factor of production.

Wage Rate

The amount of compensation workers receive in exchange for their labor, typically expressed per hour, day, or piece rate.