Which of the following is a rule recognized by the Restatement of Contracts?
A)The incompetent party must return all consideration even if the other party knew about the person's impairment.
B)If a contract is executed,the impaired party can void the contract without returning the other party to the place he/she was in before.
C)A person's contractual obligations are partially voidable depending upon the severity of his/her mental and physical health.
D)A person's contractual obligations may be voidable if that person suffers from a mental impairment that prevents him or her from acting in a reasonable manner.

Question

Quizplus · Accepted Answer

The Restatement of Contracts recognizes the rule that a person's contractual obligations may be voidable if that person suffers from a mental impairment that prevents him or her from acting in a reasonable manner. This is known as the doctrine of mental incapacity. The level of incapacity required for voiding a contract depends on the severity of the impairment, and contracts entered into by persons with mild impairments may not be voidable.

Which of the Following Is a Rule Recognized by the Restatement