Which of the Following Is Untrue Regarding the Contracts of Intoxicated

question 17

Multiple Choice

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

• A) If an intoxicated person is unable to understand the nature and consequences of his act, then the contract is voidable.
• B) The effect of intoxication is generally the same as that given to contracts that are voidable because of incompetency.
• C) Slight intoxication will destroy one's contractual capacity.
• D) To make a contract voidable, a person need not be so drunk that he is totally without reason or understanding.

---

Definitions:

Lower-Of-Cost-Or-Market

The lower-of-cost-or-market rule is an accounting principle requiring companies to record the cost of inventory at the lower value between its original cost and current market price.

Market Decline

A reduction in the overall value of the market, often indicated by decreases in stock prices and market indexes.

Lower Of Cost

is an accounting principle requiring inventory to be recorded at the lower of either its historical cost or current market value, ensuring assets are not overstated.

Market

A venue where buyers and sellers meet to exchange goods, services, or financial instruments.