The law has developed two (2)standards concerning contracts of mentally incompetent persons:
A) legal insanity and equitable insanity.
B) express insanity and implied insanity.
C) adjudged insane and insane but not adjudged insane.
D) formal insanity and informal insanity.
E) adult insanity and minor insanity.

Question

Quizplus · Accepted Answer

The law has developed two standards concerning contracts of mentally incompetent persons, which are adjudged insane and insane but not adjudged insane. Adjudged insanity refers to those individuals who have been legally declared insane through a court proceeding, while insane but not adjudged insane refers to those individuals who, while not legally declared insane, are still deemed mentally incapable of understanding the nature and consequences of their contractual obligations. The other answer choices do not accurately reflect the two standards regarding contracts of mentally incompetent persons.

The Law Has Developed Two (2)standards Concerning Contracts of Mentally