BUSINESS ADMINISTRATION
BUSINESS LAW
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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has a genuine need for the goods or services purchased.
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has ample room to store goods that are purchased.
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has the ability, according to law, to understand the contract and the consequences thereof.
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All of these answers are correct
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Detailed explanation-1: -Capacity to contract means the competency to enter into a valid contract legally. The capacity to contract binds the parties of the contract with a promise to oblige by it. But only certain persons have the competency or the capacity to make a contract.
Detailed explanation-2: -if you have the capacity to contract, you have the ability or right to sign a legal agreement to show that you accept it: As far as age is concerned, a person who has reached 18 has the legal capacity to contract as an individual.
Detailed explanation-3: -According to Section 11, “Every person is competent to contract who is of the age of majority according to the law to which he is subject, and who is of sound mind and is not disqualified from contracting by any law to which he is subject.”
Detailed explanation-4: -Contractual capacity is the ability to understand that a contract is being made and to understand its general nature. The fact that a person fails to completely understand the contract or fails to review its terms does not mean that the person lacks contractual capacity.
Detailed explanation-5: -Legal capacity is the ability to: make a binding legal agreement. sue another person. make other decisions of a legal nature.