On May 1, Craig retains Dora to act as his authorized agent. On June 1, a court declares Craig mentally incompetent. On June 2, before Dora knows of the court's declaration, she enters into a contract on Craig's be?half. The con?tract is
A) binding on Craig.
B) binding on Dora.
C) void.
D) voidable.

Question

Quizplus · Accepted Answer

The contract is void because Craig was declared mentally incompetent before Dora entered into the contract on his behalf. As a result, Craig lacked the capacity to enter into a contract at the time, making the contract void from the outset. Therefore, neither Craig nor Dora can be bound by the contract.

On May 1, Craig Retains Dora to Act as His