A contract made by a person who has been adjudicated to be insane and institutionalized or put under a guardian's care is void rather than voidable.

There are some individuals whose capacity is so impaired that they do not have the ability to form even a voidable contract.A bargain is considered to be void if,at the time of formation of the bargain,a court had already adjudicated (adjudged or decreed)one or more of the parties to be mentally incompetent or one or more of the parties was so impaired that he could not even manifest assent (e.g. ,he was comatose or unconscious).