Asked by Karina Goldberg on Jun 15, 2024
Verified
Which of the following is not considered when a court determines whether an incapacitated party can disaffirm a contract?
A) Whether the contract was fair and bargained for in good faith.
B) Whether the other party had reasonable cause to know of the incapacity.
C) Whether the contract was for goods or services.
D) Whether the other party can be placed in status quo.
Incapacitated Party
An individual who lacks the legal capacity to make decisions or enter into contracts due to mental disability, age, or other disabling conditions.
Status Quo
The existing state of affairs or current condition, often used in the context of political or social issues.
- Understand how an individual's psychological condition affects the legitimacy of a contract.
- Determine the circumstances in which contracts may be considered null or annulable.
Verified Answer
DD
Dannie DavisJun 19, 2024
Final Answer :
C
Explanation :
If the contract is fair,bargained for in good faith,and the other party had no reasonable cause to know of the incapacity,the contract cannot be disaffirmed unless the other party is placed in status quo (the position she was in before the creation of the contract).
Learning Objectives
- Understand how an individual's psychological condition affects the legitimacy of a contract.
- Determine the circumstances in which contracts may be considered null or annulable.