David had a history of frequent admissions to various types of mental institutions. David was not considered dangerous and, in fact, would have long intervals of lucidity between recurring mental problems. During a lucid interval, David entered into a contract to purchase a new Mustang convertible. Later, David wanted to avoid the contract on the grounds of his incompetence.
You must discuss the definition of a contract; discuss all contract elements including offer, acceptance, consideration, meeting of the minds and legality. Are all of those contract elements present in this scenario?; Are you missing any of the contract elements, if so, which ones? You also need to discuss the contracts theory of law that explains the answer to the above scenario. You must state the theory of law that you are relying upon in answering this question, explain the theory carefully and how the facts of this scenario apply or do not apply to that theory of law. Use references from the book “Essentials of Business and Online Commerce Law.”