Fay Is Mentally Incompetent but Has Not Been So Adjudged

question 39

Multiple Choice

Fay is mentally incompetent but has not been so adjudged by a court.Any contract Fay enters into is

• A)voidable if Fay has a lucid interval at the time of contracting.
• B)voidable if Fay lacks the capacity to comprehend the consequences.
• C)voidable if the other party does not realize that Fay is incompetent.
• D)unavoidable.

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Definitions:

Residual Income

The amount of income that an individual or company retains after accounting for all costs and expenses.

Producer Price Index

An economic indicator that measures the average changes in prices received by domestic producers for their output.