87. When Mr. Baker was declared mentally incompetent, the court appointed Mary, his daughter, to act on his behalf. Several years later, Mary asked her sister, Betty, to manage their father's affairs. If Betty enters into a listing contract for the sale of their father's home, will the listing contract be valid
Answer: D
No, because Betty has not been legally appointed to act on her father's behalf
The listing contract for the sale of their father's home will not be valid because Betty does not have legal authority to act on behalf of Mr. Baker. Since Mr. Baker was declared mentally incompetent, only Mary, as his appointed representative, has the legal capacity to make decisions regarding his affairs.
A) Yes, because Betty has been appointed by Mary to act on behalf of their father
This option is incorrect because while Mary may have the authority to manage their father's affairs, Betty does not automatically gain that authority simply by being asked to help. Mary must formally delegate her powers to Betty for the contract to be valid.
B) Yes, but only if Betty has her father's written consent
This option is incorrect because Mr. Baker, having been declared mentally incompetent, cannot provide valid consent for any contracts. Therefore, even with written consent, Betty would lack the legal authority to execute the listing contract.
C) No, because a contract involving the property of a mentally incompetent person is void
While this statement reflects a significant legal principle regarding the inability of mentally incompetent individuals to enter into contracts, it does not accurately address the scenario at hand. The contract is not void solely due to Mr. Baker's mental incompetence; it is also invalid because Betty lacks any formal appointment to act on his behalf.
D) No, because Betty has not been legally appointed to act on her father's behalf
This option is correct as it directly addresses the lack of legal authority Betty has to manage her father's affairs. Without a formal legal appointment by Mary, Betty cannot execute contracts related to their father's property.
Conclusion
The validity of the listing contract hinges on Betty’s legal authority to act on behalf of Mr. Baker. Since she has not been formally appointed by Mary, the contract is invalid, making D the definitive correct answer. All other options fail to recognize the essential requirement of legal authority in this context.