When a Person of Unsound Mind Can Make a Contract
In order for a contract to be legally binding, both parties must have the capacity to enter into it. This means that they must be of sound mind and fully aware of the terms and consequences of the agreement they are making. However, what happens when one of the parties is not of sound mind? Can they still make a valid contract?
The answer to this question is not always straightforward and depends on a variety of factors such as the severity of the person’s mental impairment and the circumstances surrounding the contract. Generally, there are three categories of individuals who may be considered of unsound mind: minors, intoxicated individuals, and those with mental disabilities.
Minors are individuals who have not yet reached the age of majority, which is typically 18 years old. Most states have laws that prevent minors from entering into contracts, with some exceptions such as those related to education, employment, or basic necessities. In some cases, a minor may enter into a contract if a parent or legal guardian agrees to be responsible for the agreement.
Intoxicated individuals may also be considered of unsound mind if their level of intoxication renders them unable to understand the terms of the contract they are making. Contracts made while under the influence of drugs or alcohol may be voided if the other party knew or should have known that the person was impaired.
Finally, those with mental disabilities may be considered of unsound mind if their disability affects their ability to understand and agree to the terms of the contract. In some cases, a court may appoint a guardian or conservator to make decisions on behalf of the person with the disability.
It is important to note that just because an individual falls into one of these categories does not necessarily mean that they cannot enter into a contract. If the person has a lucid moment and is able to fully comprehend the terms of the agreement, they may be able to make a legally binding contract. Furthermore, if the contract is in the person’s best interest and they are not taken advantage of, the courts may uphold the contract.
In conclusion, the ability of a person of unsound mind to make a contract is a complex legal issue. It is important to consult with an experienced attorney to determine whether a particular contract is valid and legally binding.