Flashcards Studio

An elderly collector owned a rare first edition worth about $80,000. A dealer visited the collector after learning from a caregiver that the collector had recently been diagnosed with dementia and often confused dollars with cents. During the visit, the collector repeatedly asked what year it was and said he needed "bus fare," but signed a bill of sale transferring the book to the dealer for $5,000. The dealer immediately resold the book to a good-faith purchaser.
One month later, a court appointed the collector's daughter as guardian for property transactions. After the guardianship order, the collector signed a contract to buy a luxury watch from the same dealer. Separately, the collector's adult son, while visibly intoxicated at a charity auction, signed a contract to buy a painting. The auctioneer knew the son was slurring his words and could not read the bid sheet.
Analyze capacity defenses for the book sale, the watch purchase, and the painting purchase, including any restitution issues.