Apply It: Mental Incompetence

Total points: $-\frac{-}{5}$

Attempts left: $2$

Identifying the Facts and Issues

Capacity is the element of a valid contract at issue here.

Mental incompetence $-$ may be affecting Bauer's capacity to contract.

People who are adjudged mentally incompetent by the court

cannot

enter into a valid contract for necessit$$es; however most contracts are voidable or void $-$ by the person or their guardian, meaning the contract does exist.

Bauer's deficiency in her cognitive abilities indicate that she may not have understood the nature, purpose, or consequences of the contract. The court select answer likely to find Bauer mentally incompetent at the time she obtained the loan. If so$,$ the loan select answer be void.

The bank select answer void the loan because the option to void the contract is select answer $.$ The bank's best argument that the contract with Bauer was valid is that Bauer was select answer at the time she agreed to the loan.