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.

Question

Quizplus · Accepted Answer

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).

Three Days Before She Was Judicially Declared Mentally Incompetent and Institutionalized,Irma