A Contract Entered into by an Insane Person Can Be

question 94

True/False

A contract entered into by an insane person can be void,voidable,or valid,depending on the mental state of the person.

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Definitions:

Cash Distribution

The payment of earnings, or other financial assets, to shareholders or partners in a company or fund.

Income-Sharing Ratio

The predetermined agreement on how profits or losses will be distributed among partners or stakeholders in a business arrangement.

Capital Deficiency

A financial state where a company's liabilities exceed its assets, indicating financial distress.

Distribution of Cash

The allocation or disbursement of cash funds by a business to its stakeholders or for operational purposes.