A person lacking mental capacity must return the other party to status quo when:
A) the other party becomes aware of the person's lack of mental capacity.
B) the person lacking mental capacity has already enjoyed the product of the agreement.
C) the other party was unaware of the person's lack of mental capacity.
D) the person lacking mental capacity has passed on the product of the agreement to someone else.

Question

Quizplus · Accepted Answer

Like minors, people lacking mental capacity can disaffirm their contracts and, on disaffirmance, must return any consideration they received that they still have. If there was no reason to know of the other party's lack of capacity, the contract cannot be disaffirmed without placing him or her in status quo.

A Person Lacking Mental Capacity Must Return the Other Party