Mentally incompetent persons on contract

[bbwinston]

Manzelle Johnson, who had been adjudicated insane, executed a quitclaim and warranty deed conveying real estate she owned to her guardian, Obbie Neal. Neal subsequently conveyed the real estate to James R. Beavers by warranty deed. Charles L. Weatherly, Miss Johnson’s present guardian, brought this action seeking a decree of the court that title to the real estate be restored to Miss Johnson because of her inability to contract. Should Miss Johnson be allowed to void the contract?

[bdubs]

.

[jess]

Mentally ill/disabled people lack the cognitive capacity to contract. If the other party knows or has reason to know of a disability, the disabled person can get out of the contract. However, some courts hold if the disabled person looks or acts as if they have capacity, it’s reasonable for the other party to rely on appearance, and thus the contract can be enforceable.