Asked by Syecia Johnson on Jul 05, 2024
Verified
Classify contracts with persons with limited mental capabilities.
Limited Mental Capabilities
Limited mental capabilities refer to situations where an individual's cognitive functioning is below average, potentially affecting their decision-making abilities.
Contracts Classification
The categorization of contracts based on their features, such as enforceability, formation, and performance.
- Understand the effects of mental incapacity on contract validity.
Verified Answer
WN
Wan Nur Aisyah Wan SukriJul 08, 2024
Final Answer :
Contracts of a person with limited mental capabilities can either be voidable, void or valid, depending on the extent of the mental incapacity. If a person suffers from delusions that may impair his or her judgement but can understand their obligations under the contract, the contract is valid. However, if the delusions prevent him or her from understanding the obligations of their contract then the contract is voidable. If a person has been adjudicated insane, the contract is void.
Learning Objectives
- Understand the effects of mental incapacity on contract validity.