While in the manic-depressive stage of mental illness, Alec ordered 20,000 paper bags, believing that he could sell them to small supermarkets as an ecologically sound marketing device. His doctor then placed him back on his medication, and he was upset to realize what he had done. Trying to make the best of a bad job, he contacted a number of small supermarkets, but they were not interested. Recalling his business school law course, he called the paper bag supplier and cancelled the contract on the grounds that he lacked capacity when he made it.
A) Alec is bound to the contract because he affirmed it by trying to sell the bags when he became unimpaired, instead of promptly repudiating the contract.
B) Since this is a contract for necessaries, he is bound to it even though he was mentally impaired when he entered into it.
C) Since this is not a contract for necessaries, Alec is not bound to it, provided he repudiated it promptly.
D) Alec's reasonable attempts to resolve the problems caused by his making the contract when he was impaired should not affect him negatively now.
E) C and D.

Question

Quizplus · Accepted Answer

Alec is bound to the contract because he affirmed it by trying to sell the bags when he became unimpaired, instead of promptly repudiating the contract.

While in the Manic-Depressive Stage of Mental Illness, Alec Ordered