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Asked by Ranjani Ramaswamy on May 28, 2024

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Three days before she was judicially declared mentally incompetent and institutionalized,Irma bought a $50,000 automobile by cash and took delivery of it.Which of the following is true about this contract?

A) It is voidable at the discretion of the seller.
B) The contract is voidable due to Irma's institutionalization.
C) The contract cannot be disaffirmed because it was fully executed.
D) Irma ratified the contract by paying the price of the car.

Disaffirm

The legal act of rejecting or nullifying a contract or agreement, often used in the context of contracts entered into by minors.

Institutionalization

The process of establishing something as a norm or standard within a society or organization.

Voidable

A legal term referring to a contract or action that can be invalidated or annulled by one or more of the parties involved.

  • Elucidate distinctions among null, annulable, and binding contracts related to mental acuity and intoxication scenarios.
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Verified Answer

DJ
Diamond JenningsJun 02, 2024
Final Answer :
B
Explanation :
If after a contract has been formed,a court finds that the person who manifested consent lacked capacity on grounds of mental illness or defect,the contract is usually considered voidable at the election of the party who lacked capacity (or her guardian or personal representative).

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