A contract entered into by a mentally incompetent person - who is not under a formal guardianship but rather is temporarily incompetent because of a head injury suffered in a serious accident - is generally voidable by the incompetent person. However, even so, the incompetent person is liable for the purchase of necessities such as food, clothing and medicines. Moreover, the incompetent person can ratify a contract entered into while she was incompetent, but only after she regains competency.

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False

Jim, who is 15 years old, goes to Best Buy, purchases $300 worth of video games, takes them home and begins playing with them. When his parents (both of whom are lawyers) find out about it, they tell him he must go to the store and disaffirm the contract, which Jim does. The "modern rule" governing this situation (which applies in some, but not all, states) is that in order to get his money back Jim must return the video games if he still has them. He will then get back the money he paid for the games, reduced by the diminished value of the video games because they have been opened and used.

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False