1. Mutual assent/consideration/capacity/legality

2. Minority/intoxication/mental incompetence

3. Yeso

4. Void/voidable/valid

5. Does/does not

6. Yeso

7. Void/voidable/valid

8. Languageature/purpose/price/consequences/parties/remedies of the contract

9. Yeso

10. Yeso

11. May/may not

12. Yeso

13. Available to any party to the contract/only available to the person who is incompetent

14. Confused/lucid

Mental Incompetence Kathy Hauer suffered a brain injury in a motorcycle accident. Two years later, Ben Eibes, who was in default on a loan and was denied further credit by the bank asked Hauer to take out a loan from the bank to invest in his business and the investment failed. When the loan matured, Hauer sued the bank claiming in part that Hauer lacked mental capacity to enter into the loan. During the trial, Hauer's attorney showed that Hauer was under court-appointed guardianship approximately one year before the loan transaction. Also, Hauer's testimony showed that she misunderstood the of the loan, believing that she was merely cosigning a loan for Ellbes and that Ellbes was responsible for paying it back. Finally, a medical expert testifying on Hauer's behalt stated that haver was very deficient in her cognitive abilities, her abilities to remember and to read, write and spell ... she was very malleable gullible, people could cortvince her of almost anything." The expert also said that she was incompetent and... unable to make reasoned decisions on the date she made the loan. nature of 1. What element of a valid contract is at issue here? Select 2. Select may be affecting Hauer's capacity to contract. 3. Can people who are adjudged mentally incompetent by the court enter into a valid contract? Select 4. If a person who has been declared incompetent by the courts enters into a contract. what kind of contract is it? Select S. What does it mean if the contract is void? The contract Select exist 6. Kathy was not judged mentally incompetent at the time of the loar, so is it theoretically possible for her to enter into a contract? Select 7. What type of contract does a mentally incompetent person enter into? Select 8. When is a mentally incompetent person's contract voidable? When the person did not understand the Select Sales and Select of the contract. 9. Does Hauer's deficiency in her cognitive abilities indicate that she may not have understood the nature, purpose, or consequences of the contract? Select 10. Is a court likely to find Haver mentally incompetent at the time she obtained the loan? Select 11. If so, the loan Select be vold, 12. Can the bank vold the loan? Select 13. Why? The aption to void the contract is Select 14. What is the bank's best argument that the contract with Hauer was vald? That Hauer was Select at the time she agreed to the loan Mental Incompetence Kathy Hauer suffered a brain injury in a motorcycle accident. Two years later, Ben Eibes, who was in default on a loan and was denied further credit by the bank asked Hauer to take out a loan from the bank to invest in his business and the investment failed. When the loan matured, Hauer sued the bank claiming in part that Hauer lacked mental capacity to enter into the loan. During the trial, Hauer's attorney showed that Hauer was under court-appointed guardianship approximately one year before the loan transaction. Also, Hauer's testimony showed that she misunderstood the of the loan, believing that she was merely cosigning a loan for Ellbes and that Ellbes was responsible for paying it back. Finally, a medical expert testifying on Hauer's behalt stated that haver was very deficient in her cognitive abilities, her abilities to remember and to read, write and spell ... she was very malleable gullible, people could cortvince her of almost anything." The expert also said that she was incompetent and... unable to make reasoned decisions on the date she made the loan. nature of 1. What element of a valid contract is at issue here? Select 2. Select may be affecting Hauer's capacity to contract. 3. Can people who are adjudged mentally incompetent by the court enter into a valid contract? Select 4. If a person who has been declared incompetent by the courts enters into a contract. what kind of contract is it? Select S. What does it mean if the contract is void? The contract Select exist 6. Kathy was not judged mentally incompetent at the time of the loar, so is it theoretically possible for her to enter into a contract? Select 7. What type of contract does a mentally incompetent person enter into? Select 8. When is a mentally incompetent person's contract voidable? When the person did not understand the Select Sales and Select of the contract. 9. Does Hauer's deficiency in her cognitive abilities indicate that she may not have understood the nature, purpose, or consequences of the contract? Select 10. Is a court likely to find Haver mentally incompetent at the time she obtained the loan? Select 11. If so, the loan Select be vold, 12. Can the bank vold the loan? Select 13. Why? The aption to void the contract is Select 14. What is the bank's best argument that the contract with Hauer was vald? That Hauer was Select at the time she agreed to the loan