When does a mentally impaired person lack the legal capacity to enter into a contract? Multiple Choice When they are physically unable to sign the contract, even though they understand and agree to it. When the other parties to the contract know or have reason to know that the person suffers from a mental impairment. When the person's impairment affects their ability to remember a contract they have previously entered. O If the person has ever had a prior mental illness or injury, even if he or she is not mentally impaired at the time he or she enters the contract. When the person suffers mental impairment that impairs the person's ability to understand the nature of the contract at the time he or she enters into the contract. Which of the following is not an effective way to ratify a contract? Multiple Choice Continuing to perform a contract after gaining capacity. O Expressly affirming one's intention to be bound by a contract after gaining capacity. Continuing to accept the benefits of a contract after gaining capacity. O Waiting an unreasonable period time to disaffirm a contract after gaining capacity. Performing a contract while still lacking capacity. When can an intoxicated person ratify a contract? Multiple Choice Only after a reasonable period of time has passed As soon as they are able to understand the contract While they are still too intoxicated to understand the contract O O Never, because contracts by intoxicated people are void, not voidable Within a reasonable period of time after becoming intoxicated Which is true about a minor's capacity to contract? Multiple Choice Minors have capacity to contract for, and must pay the contract price for, necessary. Minors can disaffirm most contracts, but must pay for the reasonable value of any necessary. A minor's capacity to contract depends on his or her life experience and maturity level. When a minor marries, he or she gains capacity to contract. If one of the parties to a contract is a minor, none of the parties can enforce the contract