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Jermal has been the owner of a car dealership for a number of years. One day, Jermal sold one of his most expensive cars to Kessler. At the time of the sale, Jermal thought Kessler acted in a peculiar manner, but he gave the matter no further thought until four months later, when Kessler's court-appointed guardian appeared at Jermal's office, returned the car, and demanded Kessler's money back. The guardian informed Jermal that Kessler had been adjudicated mentally incompentant two months earlier by a proper court.
(a) Discuss the rights of the parties in this situation.
(b) If Kessler had been adjudicated mentally incompetent before the contract was formed, what would be the legal effect of the contract?
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Case study on CORPORATIONS LAW ASSIGNMENT
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INTRODUCTION TO BUSINESS LAW
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