Mental Illness and the Right to Contract

The Florida Supreme Court has set standards for determining mental incompetence in contract matters. They must determine if the person understood the nature and effect of the transaction when they signed the contract. This means that if someone is mentally incompetent at the time they signed a contract, they may be able to cancel the contract. The Florida Supreme Court has set a standard for determining if someone is mentally competent to enter into a contract. If the person has been declared incompetent by a court, they can void the contract regardless of their ability to understand the transaction. If there is no court declaration of incompetency, the court will consider medical history, behavior at the time of the transaction, and the fairness and complexity of the transaction to determine if the person was competent. Mental illness can affect a person’s ability to use their intelligence, even if they have intelligence. If someone is found to be mentally incompetent in a contract, the other party may have to give back what they received. If there’s conflicting evidence about the person’s mental abilities, the person claiming they’re incompetent has to prove it. The court will protect people who are incompetent in legal transactions. If someone benefits from the transaction, the court can consider that when deciding if they’re telling the truth about someone else’s incompetency. It’s important for lawyers and judges to understand the rules for proving incompetency in a contract, and not assume that someone who seems smart is mentally healthy. Contracts made by individuals who are mentally unable to understand the nature and effects of the contract are not automatically void, but can be voided by the incompetent person or their legal guardian. The test for determining incompetence in a contract is different from the test for determining incompetence in criminal cases or for making a will. Courts will consider the fairness and complexity of the contract in determining the person’s capacity to understand it. There may be conflicting evidence in cases of incompetence, and the court will determine the competency based on the evidence presented.

Source: https://www.floridabar.org/the-florida-bar-journal/mental-illness-and-the-right-to-contract/