Which of the following individuals has the legal capacity to enter into a contract?

Prepare for the Manitoba IBAM Fundamentals of Insurance Exam. Use our quiz with multiple-choice questions, each offering hints and explanations. Get set to ace your exam!

The legal capacity to enter into a contract typically requires the individual to be of a certain age, mentally competent, and not influenced by substances or external factors. Seniors are generally presumed to have the legal capacity to contract, provided they are not mentally incompetent or under any undue influence. They are recognized as adults who can understand the terms and implications of a contract, allowing them to make informed decisions.

In contrast, individuals under the influence of alcohol may not fully understand or appreciate the contract terms, which can impair their legal capacity. Minors are usually restricted from entering into binding contracts unless they are for necessities or are ratified upon reaching the age of majority. Mental incompetents are persons who, due to mental health issues or cognitive impairments, cannot understand the nature and consequences of their actions in the context of contracts. Thus, they also lack the legal capacity to enter into a contract.

Subscribe

Get the latest from Examzify

You can unsubscribe at any time. Read our privacy policy