Question 109

A contract will be deemed invalid if one party was not competent.

A contract is invalid if one of the parties involved lacks the legal capacity to enter into a contract, which typically means they are not of sound mind, are underage, or are otherwise incapacitated.

A) the contract was not in writing

While certain contracts must be in writing to be enforceable under the Statute of Frauds, not all contracts require written form. Many verbal agreements are valid unless they fall under specific categories that necessitate written documentation.

B) the contract was not approved by an attorney

The validity of a contract does not depend on approval by an attorney. While having legal counsel is advisable to ensure that the terms are fair and enforceable, the absence of attorney approval does not render a contract invalid.

C) consideration was not monetary

Contracts can be valid without monetary consideration, as consideration can take many forms, including services or goods. The key aspect is that there must be a legal benefit or detriment involved, not solely monetary compensation.

D) one party was not competent

This option is correct because a contract is voidable if one party lacks the capacity to understand the nature and consequences of the agreement. Competence is a fundamental requirement for a valid contract.

Conclusion

The correct answer is D, as a party's lack of competence directly impacts the enforceability of a contract, rendering it invalid. Other options, while relevant to contract formation, do not fundamentally negate the legitimacy of a contract in the same way that incompetence does.