Colleen Is Intoxicated,but Still Mentally Capable of Understanding the Consequences

question 61

Multiple Choice

Colleen is intoxicated,but still mentally capable of understanding the consequences of her actions when she signs a contract to sell the rights to her latest phone app design to Addie.The contract is

• A)enforceable only if Colleen does not attempt to disaffirm it.
• B)enforceable even if Colleen attempts to disaffirm it.
• C)unenforceable if Addie attempts to disaffirm it.
• D)enforceable only if Addie does not attempt to disaffirm it.

---

Definitions:

Double-Declining-Balance

The Double-Declining-Balance method is an accelerated depreciation technique which doubles the rate of straight-line depreciation, emphasizing higher depreciation costs in the early years of an asset's life.

Residual Value

The projected sale price of an asset at the termination of its operational life.

Depreciation Expense

Apportioning the expense of a concrete asset across its serviceable life.

Useful Life

The estimated period over which an asset is expected to be usable by the owner.