A requirement for the existence of an enforceable contract is that the parties have the legal capacity to contract. Which of the following is incorrect with respect to the law of incapacity?
A) If someone contracts with an insane person but there was no indication of mental illness, the contract can be binding.
B) A contract by an insane person for necessities, such as food, is binding.
C) The law governing contracts with persons intoxicated by alcohol or drugs is the same as the law governing contracts with the insane.
D) If you knew that you were negotiating a new lease, but that you weren't being as effective as you wanted to be because you had been drinking, you can have the resulting contract set aside.
E) If a mentally impaired person cannot avoid a contract on the basis of insanity, the court could still set the contract aside for being an "unconscionable" transaction.

Question

Quizplus · Accepted Answer

If you were aware of the negotiation and its nature, being less effective due to drinking does not automatically allow you to set aside the contract. The law requires a higher level of incapacity, such as not understanding the nature of the transaction.

A Requirement for the Existence of an Enforceable Contract Is