Which of the following is true of the test of incapacity?
A) A medically insane person does not have the legal capacity to contract.
B) Emancipated in this context means a general hearing was held on the person's mental competency, and the court determined that the person was of unsound mind.
C) A person could be periodically insane but can enter a binding contract during a lucid moment.
D) In most states, the agreements of persons who have been adjudicated insane are not void.

Question

Quizplus · Accepted Answer

A person could be medically insane (e.g., suffering from paranoid delusions) but still have the legal capacity to contract. A person could be periodically insane but enter a binding contract during a lucid moment.

Which of the Following Is True of the Test of Incapacity