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Mental impairment as in mental disability: if the court declares a person mentally disabled, contracts with them are void. If the other party should have known that the person was mentally disabled then the contract is voidable.
Mental impairment as in drunk: contract is voidable if the person was so drunk that they could not have known what they were doing and if the other person knew they were drunk. Drunk person must make an effort to void contract as soon as they are sober.
Mental impairment as in just stupid: The contract is valid. Bad deals are not the court's problem.
Additional comment: I mostly agree with the answer above, but the law is nuanced on this. There is an established concept of whether a person is capable of making a decision on the contract. For example, a 10-year-old child is competent enough on buying candy (they cannot later argue they were too young to enter into this deal) but the would be considered too young to buy a computer, perhaps. In the financial market, certain trades (like options) are reserved for "sophisticated" investors, not the average person. Also, a contract can be thrown out of the wording is excessively complex and would not have been understandable to the reasonable person.
What else can I help you with?
Can a mentally retarded adult cosign for another?
No. A diagnosed mentally retarded person lacks the legal capacity to sign a contract.No. A diagnosed mentally retarded person lacks the legal capacity to sign a contract.No. A diagnosed mentally retarded person lacks the legal capacity to sign a contract.No. A diagnosed mentally retarded person lacks the legal capacity to sign a contract.
Can a contract be broken if the person who signed it was mentally unstable at the time of signing'?
a contract is void when it is lacking mental capacity
Who is a person in contract law?
A legal entity is considered a person for purposes of a contract. Corporations and companies are legally considered a person.
What is a word that describes a person with mental disabilities?
Most single-word descriptions of mental disability are considered to be insulting in various degrees. There are words that refer to particular forms of mental disability, illness or disease. However, some of the phrases normally used in polite society in the first part of the twenty-first century are: mentally challenged, mentally impaired, learning disabled, speech or language impaired
When UK banks give loans to a mentally ill person does that person have to pay the loans back to bailiffs?
The person who is mentally ill is incapacitated. Such a person cannot enter into a contract as they cannot distinguish between right and wrong. Therefore the bank cannot enter into a contract with such a person.
Does mental incompetence make a contract void?
Generally, yes, mental incompetence can make a contract void. Often voiding the contract will require help from legal professionals, especially if the other party wants to keep the money or goods.
What is voidable contract?
A contract that can be voided. It is a valid contract unless the party with the ability to void it does so. Examples of those that can create voidable contracts are minors, mentally disabled persons, or an intoxicated person.
Louisiana your husband had a stroke and his kids are trying to get power of attorney?
If the husband has become mentally incompetent as a result of the stroke, he would not be considered mentally competent to grant a power of attorney to anyone. A power of attorney that is granted during the time of one's incompetency would generally not be considered valid. If a person is mentally incompetent, an interested person could generally petition a probate court (in the county in which the mentally incompetent person resides) to have a guardian of the person and the property appointed.
When is capacity to enter a contract diminished?
when the person is a minor when the person is severely intoxicated when the person is mentally disabled when the person is an unincorporated association when the person is an Aboriginal individual on a reserve when the person is a public official acting ultra vires
What is the legal and mental capacity to contract?
everyone who is not a child, mentally disabled, intoxicated, an unincorporated association, an Aboriginal person on a reserve, or public authorities acting ultra vires
What do you call a person that is mentally healthy?
A mentally healthy person is safe
Can a non mentally challenged person divorce a mentally challenged mate?
Yes, a person who is not mentally challenged can divorce a person who is mentally challenged would have to be proven they are mentally challenged), but they would have to let the courts decide in the provisions of the divorce what you would pay to help sustain the lifestyle of the mentally challenged person.
