Question

In: Accounting

Read the following scenario and answer the question in 5-10 sentences. You are an adult friend...

Read the following scenario and answer the question in 5-10 sentences.

You are an adult friend of a sixty-five year old male, James, who lives next door. James is friendly and kind to you and your family. James has become increasingly forgetful of facts and names lately and you once found him lost in another part of your familiar neighborhood. On the other hand, James has significant periods of mental clarity, living independently and performing complex mental tasks. For example, he profitably buys and sells collectibles at flea markets and on the Internet. James’s family lives far away, and may not know that James is possibly showing early signs of mental instability. You know that a court can determine if someone is mentally incompetent and appoint a guardian to represent that individual. Only then can the guardian enter into binding legal obligations on behalf of the mentally incompetent person. From the perspective of contractual legal capacity, explain the advantages and drawbacks of declaring someone like James incompetent.

Solutions

Expert Solution

Answer:

  1. As James is hinting at the psychological handicap he ought to be proclaimed clumsy before getting associated with further contracts.
  2. When James is announced rationally awkward, any understandings made by James after formal revelation would end up void and this would assist James with getting free of any odds of legally binding break because of his psychological impedance.
  3. As the court would select gatekeeper would deal with James' business issues and can likewise go into concessions to sake of James.
  4. The watchman can likewise dis confirm the agreements if James makes any.
  5. Consequently James can proceed with his business through the gatekeeper without slip-ups through the watchman beating his psychological unsteadiness.
  6. The downsides incorporate the odds of abuse of the guardianship if appropriate checking isn't set up.
  7. In the event that James is announced rationally awkward he would not have the capacity to go into any agreements and thus he will be unable to control his business.
  8. James is flimsy just for quite a while and he may feel urgent when he can't work together by claim.
  9. In addition the watchman will be unable to play out the business in the same class as James does.

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