Which of the Following Is True Regarding the Ability of Persons

question 34

Multiple Choice

Which of the following is true regarding the ability of persons suffering from a mental illness to enter into a binding contract?

• A)Persons suffering from a mental illness have full capacity to enter into a binding contract so long as they inform the other party that they are in treatment.
• B)Persons suffering from a mental illness may have full,limited,or no legal capacity to enter into a binding contract depending on the nature and extent of their mental deficiency.
• C)Persons who suffer from a mental illness always have full capacity to enter into a binding contract.
• D)Persons suffering from a mental illness have full capacity to enter into a binding contract so long as they do not present a danger to themselves or others.
• E)Persons suffering from a mental illness have no capacity to enter into a binding contract.

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Definitions:

After-Tax Equilibrium

The balance reached in the market after accounting for the effects of taxes.

Socially Optimal Quantity

The level of output or production that maximizes societal welfare, taking into account all external costs and benefits.

Equilibrium Price

The price at which the quantity of a good or service demanded by consumers equals the quantity supplied by producers, resulting in a stable market condition.

Pollution

The release of harmful substances or products into the environment as a result of human activity.