Gerard,an adult,contracts with Communiserve to purchase,in installments over a period of five years,a very large quantity of services that he will probably never need.Although Gerard understands what he is doing when he enters the contract,he has a mental condition that impairs his ability to act in a reasonable and rational way.Under the Restatement:
A) Gerard's contract is voidable at his option while it is entirely executory.
B) Gerard cannot avoid the contract if Communiserve had no reason to suspect Gerard's incompetency.
C) Gerard cannot avoid the contract if the terms are fair.
D) Gerard can only avoid the contract if the terms are grossly unfair.

Question

Quizplus · Accepted Answer

The Restatement provides that a person with a mental impairment that impairs his or her ability to understand the nature and consequences of the transaction and its effect upon his or her interests may avoid the contract at his or her option while it is still executory. The fact that Communiserve had no reason to suspect Gerard's incompetency or that the terms are fair is not relevant to this determination. The only consideration is whether Gerard has the mental capacity to understand the transaction and its consequences.

Gerard,an Adult,contracts with Communiserve to Purchase,in Installments Over a Period