Which of the following is incorrect with respect to the law of incapacity?
A) To escape a contract on the basis of insanity, the insane person need only show that he did not know what he was doing at the time the contract was formed.
B) Even after the passage of the Charter of Rights and Freedoms, some contracts entered into with status Indians cannot be enforced.
C) Married women are no longer incapacitated.
D) Some Crown corporations have limited capacity to contract.
E) Trade unions may have limited capacity to contract.

Question

Quizplus · Accepted Answer

The statement about insanity and escaping a contract is incorrect because, in many jurisdictions, the standard for escaping a contract due to insanity requires not only that the person did not know what they were doing at the time the contract was formed but also that the other party was aware or should have been aware of the person's incapacity.

Which of the Following Is Incorrect with Respect to the Law