In: Economics
A man named Bob Smith believes that he is Santa Claus (who delivers presents to all the children around the world on Christmas Eve). In fact, he is not Santa, but he has believed this for many years. He signs his name "Santa." He signs many contracts as "Santa," and he refers to his wife as "Mrs. Claus" even though her name is actually Betty Smith. She puts up with it, because he really does believe he is Santa, and because she loves him and because his wages from his job at Hasbro toys pays the bills.
One day he enters a contract with your company to hire you to build him a gigantic workshop in his backyard so he can build his toys and stable his "eight tiny reindeer." In return he will pay you $120,000 for the construction. When his wife learns of this deal, she tries to reject it because it is voidable due to his lack of contractual capacity.
Was this contract voidable, or valid and enforceable? Fully explain your answer.
Bob smith is actually an ordinary man and he called himself a santa claus which is to soma extent a psychological disorder in which he suffers. Like him many cases are found in around us who calls themselves with other personality names, it is actually a fact that a man keeps such passions wants to became similar that persson which he desires or keeps the passions for that thing. According to psychological point of view bob smith actually wants to santa claus in his life but is impossible now he wants to become similar that. the contract of bob smith is fair and genuine, only if he can effort, if he does not have the sufficient money for contact and offers for such contract and seduces the people or any company , then it means that he is a disorder patient , if he can effort money and is telling truth that he will invest 120000 dollars then he deserves the contract, because it is his desire and wish of life to be a sant claus. But her wife knew him very well she witnessed that he has not enough money for this contract and the words of her wife are trustworthy , she must tell truth, in this way the contract is avoidable, due to his lakness of contractual capacity and is invalid and not enforceable any way.
Hope you got your answer if you need some more information about your question feel free to ask....thank you