INSTRUCTIONS: Please read the following cases and answer the questions using the provided resources, your course textbook & your own ideas/insights based on the online learning sessions/interactions:

Mr. A, age 40, bought a painting from Mrs. X, age 35, for 500 KD. The next day Mr. D came to Mr. A and introduced himself as Mrs. Xs guardian. Mr. D asked Mr. A to return the picture in exchange for 500 KD because Mrs. X was mentally ill, she had schizophrenia and could not understand her actions and the contract.

Mr. D showed the document about the illness of Mrs. X and the appointment of him as a guardian. In response, Mr. A refused to return the painting because he did not notice anything wrong in the behavior of Mrs. X. Did Mrs. X have capacity to enter the contract? Explain your answer. (30 marks)