Which of the Following Statements Is True of Contract Ratification

question 48

Multiple Choice

Which of the following statements is true of contract ratification?

• A) Minors who have lied about their age can ratify their contracts.
• B) A contract is voidable if it is ratified on reaching majority.
• C) For a person adjudicated insane, his or her personal representatives cannot ratify the contract.
• D) People who regain their mental capacity can ratify their contracts.

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Definitions:

Effective Rate

Refers to the real rate of interest earned or paid on an investment, loan, or other financial product, adjusted for the effect of compounding over a given period.

Return Required

The minimum expected rate of return on an investment necessary for an investor to consider it worthwhile.

Interest-Bearing Note

A debt instrument that pays interest to the holder, typically issued at face value and redeemed at maturity for the same amount plus accrued interest.

Times Interest Earned Ratio

A financial metric that measures a company's ability to meet its debt obligations by comparing its interest expenses to its earnings before interest and taxes.