Elena, who is under the influence of prescription medication that impairs her judgment, signs a real estate purchase agreement in California for a home priced at $425,000. After the medication wears off, Elena wants to void the contract. Under California Civil Code §39, what is Elena's BEST legal argument?
Correct Answer
C) The contract is voidable because she lacked the mental capacity to understand the nature of the transaction
Under California Civil Code §39, a person who lacks the mental capacity to understand the nature and consequences of a transaction may seek to have the contract declared voidable. The impairment from prescription medication can qualify if it rendered Elena unable to comprehend the transaction. The contract is voidable, not automatically void.
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A homeowner in Fresno receives an offer to purchase his property. The prospective buyer pays the homeowner $5,000 in exchange for the homeowner's promise to keep the offer open and irrevocable for 30 days while the buyer arranges financing. Under California law, what type of agreement has been created?
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