Contracts Made by Severely Intoxicated People

question 67

Multiple Choice

Contracts made by severely intoxicated people:

• A)are void rather than voidable.
• B)can be disaffirmed anytime after he/she has regained his/her mental faculties.
• C)cannot be ratified until the person has regained his mental faculties.
• D)are always binding,because the law does not want to reward drug or alcohol abuse.

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Definitions:

Annual Interest Expense

The total amount of interest a company expects to pay on its debts over a year.

$100,000 Bond

A debt instrument issued by a corporation or government entity, with a principal amount of $100,000, to raise funds from investors.

Premium

An amount paid in addition to a standard price or rate, or the amount above par value for a security.

Bond Interest Expense

The cost incurred by an issuer of bonds for the interest payments made to bondholders over a period.