Which of the following statements is true about intoxicated and mentally incompetent persons in a contract?
A) A court of law legally terms mentally incompetent persons as "infants" to a contract.
B) A court prevents intoxicated persons from making a contract voidable in any circumstance.
C) The capacity to contract is simply lost due to intoxication and mental incompetency even before a court can adjudge a person of such mental incompetency.
D) A court measures capacity to contract by whether an adult is capable of understanding the nature and purpose of the contract.
E) The complexity of a contractual transaction and the mental capacity of an adult are irrelevant in controlling the right to disaffirm a contract.

Question

Quizplus · Accepted Answer

Except when a court has judged an adult to be mentally incompetent, that adult does not lose capacity to contract simply because of intoxication or mental impairment. In most cases involving adult capacity to contract, courts measure capacity by whether the adult was capable of understanding the nature and purpose of the contract.

Which of the Following Statements Is True About Intoxicated and Mentally