Fact Pattern 22-2
Qacy employs Royce as his authorized business agent on April 1.Qacy's son Stan peti?tions a court to declare Qacy mentally incompetent.The court grants Stan's request on May 1.
-Refer to Fact Pattern 22-2.Royce enters into a contract on Qacy's be?half on May 15,before Royce knows of the court's action.The contract is

Question

Fact Pattern 22-2 
Qacy employs Royce as his authorized business agent on April 1.Qacy's son Stan peti?tions a court to declare Qacy mentally incompetent.The court grants Stan's request on May 1.
-Refer to Fact Pattern 22-2.Royce enters into a contract on Qacy's be?half on May 15,before Royce knows of the court's action.The contract is

Quizplus · Accepted Answer

The contract entered into by Royce on behalf of Qacy after he had been declared mentally incompetent is void. A contract requires both parties to have the capacity to enter into it, and Qacy’s mental incompetence means that he lacks the capacity to enter into a contract. Therefore, the contract is void and not binding on anyone.