Which of the Following Is True of Contracts Involving People

question 73

Multiple Choice

Which of the following is true of contracts involving people suffering from mental illnesses?

• A)Contracts of people suffering from a mental defect at the time of contracting are usually considered to be enforceable.
• B)A person disaffirming on the ground of mental impairment need not return any consideration given by the other party.
• C)A person disaffirming on the ground of mental impairment is liable for the reasonable value of necessaries.
• D)A person incapacitated by mental impairments cannot ratify a contract if he/she regains his capacity.

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Definitions:

Bargain Purchase

The acquisition of an asset or company at a price significantly below its fair market value.

AASB 3

The Australian Accounting Standards Board's standard on Business Combinations, which provides the guidelines for accounting for the acquisition of businesses.

Business Combinations

Transactions or other events in which an acquirer gains control over one or more businesses, usually involving mergers or acquisitions.

Disclosure

The provision of relevant financial and other significant information by a company to its stakeholders and the public, ensuring transparency and informed decision-making.