Mr. Martin, who has been declared bankrupt, decided to rent an apartment for $600 per month, since his house is to be sold to satisfy his creditors. Prior to the sale of his house, he cannot enter into such a contract, since he lacks the capacity to contract except for necessaries.

Question

Quizplus · Accepted Answer

A person declared bankrupt generally lacks the capacity to enter into contracts, except for those involving necessaries, until their financial situation is resolved.

Mr Martin, Who Has Been Declared Bankrupt, Decided to Rent