Jim sold his house to Ben for $100,000 on May 1, 2001. Today is June 1, 2001. The court determined today that Jim was mentally incompetent on May 1, the day he sold the house to Ben. A guardian has been appointed for Jim. The guardian wants Ben to give the house back in exchange for a refund of the $100,000. What are the rights of Jim and Ben? The contract stands unless both parties agree that the contract should end. Because the purpose of the law is to protect those people who contract with incompetent persons, only Ben may avoid the contract.
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