Statement A: When money is paid or property delivered for an illegal purpose, the contract may be repudiated by one of the parties before the purpose has been accomplished. A contr... Statement A: When money is paid or property delivered for an illegal purpose, the contract may be repudiated by one of the parties before the purpose has been accomplished. A contract which was entered into during the lucid interval of a demented person is valid. Both are false. Only Statement 'B' is false. Neither is false. Only Statement 'A' is false.
Understand the Problem
The question presents two statements about contracts and seeks to determine the truthfulness of each statement, specifically whether they are true or false. It appears to pertain to contract law and the implications of mental capacity in agreements.
Answer
Only Statement 'B' is false.
Only Statement 'B' is false: the contract entered into during the lucid interval of a demented person can be valid.
Answer for screen readers
Only Statement 'B' is false: the contract entered into during the lucid interval of a demented person can be valid.
More Information
Statement A is generally considered true as contracts entered for illegal purposes can be repudiated before completing the illegal act. Statement B is false because contracts entered during lucid intervals of demented persons are valid if all other contract elements are satisfied, like consent and understanding.
Tips
A common mistake is assuming that contracts made during lucid intervals of demented persons are invalid, which is not necessarily true if competency at the time of the contract can be established.
Sources
- Acceptance made by letter or telegram does not bind the offerer ... - coursehero.com
- Contracts-law-1 (1) (pdf) - CliffsNotes - cliffsnotes.com
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