A contract entered into by a mentally incompetent person can be valid if the person had capacity at the time the contract was formed.

Question

Quizplus · Accepted Answer

As long as the person had the mental capacity to understand the terms of the contract at the time it was formed, the contract can be considered valid. However, if the person lacked capacity at the time of formation, the contract may be voidable or unenforceable.

A Contract Entered into by a Mentally Incompetent Person Can