If a Mentally Incompetent Person Is Unable to Understand the Purpose

question 27

Multiple Choice

If a mentally incompetent person is unable to understand the purpose and effect of a contract but has not been legally adjudged insane,_____.

• A)the competent party has an absolute right to rescind the contract
• B)the contract would not be voidable at the option of the impaired party
• C)the contract would not be void at the option of the impaired party
• D)the impaired party would have to pay the reasonable value of any necessaries received under the contract

Recognize the role of government intervention in markets.

Appreciate the significance of private property rights and contract enforcement in wealth creation.

Identify the potential wealth creation or destruction due to technological advancement.

Understand the purpose of price ceilings and floors in market dynamics.

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Definitions:

Effectiveness

The degree to which something is successful in producing a desired result or outcome, often measured against predetermined objectives.

Organisational Development

A planned, systematic process aimed at increasing an organization's effectiveness and health through interventions in its processes, structures, and culture.

Diagnosis

The identification of the nature and cause of a certain phenomenon, typically referring to the determination of a medical condition based on symptoms and tests.

Client System

A group or organization that receives services, products, or advice from a consultancy or service provider.