Mental Incompetence Kathy Hauer suffered a brain injury in a motorcycle accident. Two years later, Ben...

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Mental Incompetence Kathy Hauer suffered a brain injury in a motorcycle accident. Two years later, Ben Eilbes, 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 natur of the loan, believing that she was merely cosigning a loan for Eilbes and that Eilbes was responsible for paying it back. Finally, a medical expert testifying on Hauer's behalf stated that Hauer was "very deficient in her cognitive abilities, her abilities to remember and to read, write and spell... she was very malleable, gullible, people could convince 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. 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 Mental Incompetence Kathy Hauer suffered a brain injury in a motorcycle accident. Two years later, Ben Eilbes, 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 natur of the loan, believing that she was merely cosigning a loan for Eilbes and that Eilbes was responsible for paying it back. Finally, a medical expert testifying on Hauer's behalf stated that Hauer was "very deficient in her cognitive abilities, her abilities to remember and to read, write and spell... she was very malleable, gullible, people could convince 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. 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

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1 Competencycapacity Mental injury has left her incompetent to enter ... View the full answer