Question

25 as a recently licensed insurance representative, you are meeting with several clients interested in purchasing life insurance. you are aware that the law mandates all individuals, regardless of age, must possess \legal capacity\ to enter into a contract. which of the following individuals has the legal capacity to enter into a contract?
a. lilly, a 30 - year - old woman, who lost all her memory after an accident.
b. max, a 12 - year - old boy, who has no appointed guardians to act on his behalf.
c. ram, a 15 - year - old student, who has an above average intelligence quotient.
d. melanie, a 101 - year - old woman, who is financially dependent on her son.

Explanation:

To determine legal capacity to contract, we analyze each option:

• Option a: Lilly has memory loss, which may affect her ability to understand the contract, so she likely lacks legal capacity.
• Option b: Max is 12 years old (a minor) and has no guardians acting on his behalf. Minors typically lack legal capacity to contract on their own.
• Option c: Ram is 15 years old (a minor). Even with above - average IQ, minors generally don't have full legal capacity to enter into contracts.
• Option d: Melanie is 101 years old. Financial dependence on her son does not affect her legal capacity. As an adult, she is presumed to have the mental capacity (unless proven otherwise) to enter into a contract.

Answer:

d. Melanie, a 101 - year - old woman, who is financially dependent on her son.