Asked by
Amelia Stone
on Dec 18, 2024Verified
Samuel, who has been declared bankrupt, decided to rent an apartment for $800 per month, since his house is to be sold to satisfy his creditors. Assuming this is a contract for necessaries, Samuel must tell the landlord that he is a bankrupt or he cannot make the contract.
Bankrupt
A legal status of a person or entity that cannot repay the debts it owes to creditors.
Necessaries
Basic essential goods required for living, which can include food, clothing, shelter, and healthcare, depending on the context.
Landlord
An individual or entity that owns property and rents it out to tenants, providing housing or commercial space in exchange for rent.
- Understand the legal criteria for the formation of contracts.
Verified Answer
RH
Learning Objectives
- Understand the legal criteria for the formation of contracts.