Microsoft Word-Chapte?D lor/Downloads/Chapter % 2014%20Additional%20Question%20f
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Question
Microsoft Word-Chapte?D lor/Downloads/Chapter % 2014%20Additional%20Question%20for%20Grading%20(SUM 14) pdf he following item should be added to the end-of-chapter questions specified in the Assiguments Microsoft word Chapte × alendar for the week this chapter is due. 14-1B In each of the following situations determine whether the contract will be valid, voidable, or void and explain whether the contracting party will be liable for her contractual obligation. A) One night after Kira had several drinks, she sold Charlotte a diamond necklace worth thousands of dollars for just $100. The next day Kira requested the return of her necklace and offered to return the $100. Charlotte refused to return the necklace and refused to accept the money. Kira contended that she had been intoxicated at the time the bargain was made and that she should be able to legally rescind the sale. Is she correct? B) Joanne, a seventy-five-year-old widow lives on her husband's small pension. She has become increasingly forgetful, causing her family to worry that she may be suffering from a form of senility. However, she has not been diagnosed with an incapacitating illness nor had she been ruled incompetent by a judge. One day while out shopping Joanne stops by a music store that was having a sale on pianos and she entered into a multiyear installment contract for the purchase of a grand piano. The next day, while Joanne's niece is visiting, the piano was delivered to her home. When her niece questioned Joanne about the piano. Joanne clearly related the events of the shopping trip the day before. She admitted that she may have acted impulsively but she declared that she has always wanted a piano and that she could never talk her late husband into making such a purchase. Despite her niece's objections, the delivery was made. Can Joanne or any of her family members legally avoid this contract and rescind this purchase?Explanation / Answer
a) The Contract between these two will be void.
A agreement will be considered as a Valid Contract, when one party must make an offer and other party must accept it. There must be some value or bargained for exchange of Promises, meaning something of value must be given in return for a promise.
To be bound by the contract, one must have the ability to form a contract, it is called "Capacity to Contract". Person who is unable, due to age or mental impairment, to understand what she is doing when she signs a contract may lack capacity to contract. Any contract signed by that person is void.
In this case kira was drunk/intoxicated, so she was not in "Capacity to contract" when she made that bargain or contract. so The contract made between Kira and Charlotte will be void.
b) The Contract is valid and Joanne or any of her family member can't legally avoid the contract.
As when the contract was made, she was in capacity to contract as she was not diagnosed with any incapacitating illness till now. She acted impulsively but she was not influenced by anyone. She wanted that piano. So The contract made between Joanne and Seller is valid, and she can't legally avoid it.