Contracts

Under NC contract law, if one party to a real estate contract is declared incompetent by a court, the contract is:

AVoidable by either party
BVoid — a person declared legally incompetent lacks capacity to contract✓ Correct
CBinding since it was signed before the incompetency ruling
DValid if the other party acts in good faith

Explanation

A person who has been adjudicated (declared) legally incompetent by a court lacks legal capacity to contract; any contract entered into after that ruling is void.

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