Which of the Following Is True of Contracts Involving People

question 73

Multiple Choice

Which of the following is true of contracts involving people suffering from mental illnesses?

• A)Contracts of people suffering from a mental defect at the time of contracting are usually considered to be enforceable.
• B)A person disaffirming on the ground of mental impairment need not return any consideration given by the other party.
• C)A person disaffirming on the ground of mental impairment is liable for the reasonable value of necessaries.
• D)A person incapacitated by mental impairments cannot ratify a contract if he/she regains his capacity.

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Definitions:

Profit-Maximizing Monopoly

A market situation where a single firm controls the entire market for a product or service, setting the price at a level that maximizes its profits.

Output Per Week

The total product or service quantity produced by a company or economy in a week.

Monopoly Equilibrium

The state in which a monopolistic company determines its price and output level where its marginal cost equals its marginal revenue.

Competitive Equilibrium

A state in a market where supply equals demand, resulting in an equilibrium price and quantity that clears the market.