Question

an adult, contracts with Communiserve to purchase, in installments over a period of five years, a very large quantity of services that he will probably never need. Although Gerard understands what he is doing when he enters the contract, he has a mental condition that impairs his ability to act in a reasonable and rational way. Under the Restatement:a. Gerard’s contract is voidable at his option while it is entirely executory.b. Gerard cannot avoid the contract if Communiserve has no reason to suspect Gerard’s incompetency.c. Gerard cannot avoid the contract if the terms are fair.d. Gerard can only avoid the contract if the terms are grossly unfair.63. In most states, whether the time within which a minor disaffirms a contract constitutes a reasonable time is determined by:

Answer 1

Answer:

62). Gerard’s contract is voidable at his option while it is entirely executory.

63) based on the circumstances of the case.

Explanation:

62. Note that, under the restatement, Gerard can avoid the contract legally even though he can perform the contract duty. This is because of his mental state.

63. Evidently a minor cannot avoid a contract just because he says he lacks the legal capacity.

Certainly, the decision to accept his claims would be based on the circumstances surrounding the case.