Contracts

Under Michigan law, a real estate contract where one party lacks legal capacity (e.g., is adjudicated incompetent) is:

AVoidable only by the other party
BVoid and without legal effect✓ Correct
CEnforceable if the court approves it
DVoidable by the incompetent party's guardian

Explanation

A contract with a person adjudicated legally incompetent is void (not just voidable) because that person lacks legal capacity to contract. A contract with a person merely intoxicated or undiagnosed may be voidable.

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