Dilbert has not been declared incompetent by a court, but he is suffering from an insane delusion that a magical gnome named Pele appears on his front lawn every afternoon and predicts the future. Yesterday, Pele told Dilbert that if he purchased a huge tract of land in Dallas, he would be happy ever after. Today, Dilbert entered a contract to purchase a huge tract of land in Dallas, following Peles advice. Which of the following statements is true? a. The contract to purchase is void, because it was made on Peles advice. b. The contract to purchase the land is voidable, because Dilbert has not been declared insane. c. The contract to purchase the land is valid, because the seller didnt know Pele suggested it. d. None of the above. On his 17th birthday, Peter makes a contract to purchase an LED television. In a state in which the age of majority is 18, which of the following actions would be a ratification of the contract? a. One week before his 18th birthday, Peter telephones the seller and says, I intend to keep my promise to you in our contract. b. Three days after his 18th birthday, Peter telephones the seller and says, I intend to keep my promise to you in our contract. c. Before his birthday Peter behaves as though he intends to be bound by the contract, but two days after his 18th birthday, he calls the seller and says, The deals off. d. None of the above are ratification. A person who has legal ________ to contract is one who has the mental ability to understand his or her rights and obligations under a contract and, therefore, will presumably be able to understand how to comply with the terms of the agreement. A) Capacity B) Understanding C) Consideration D) History E) Ratification Which of the following best describes the requirement of legality in contracts? a. The parties must be represented by an attorney. b. The purpose and subject matter of a contract must be legal. c. The court makes its decision regarding legality without reference to public policy issues. d. All of the above.