Capacity
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13:57:48
Source: Commentary by keyword(s)
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15 of 63 DOCUMENTS: Carter on Contract/Part IV -- Parties to the Contract/Chapter 16 Capacity/3. MENTALLY DISABLED AND INTOXICATED PERSONS 3. MENTALLY DISABLED AND INTOXICATED PERSONS
General principles: (1) A contract is voidable on the basis of mental incompetence arising from unsoundness of mind or intoxication if: (a) the defendant lacked capacity to contract; and (b) the plaintiff knew of the unsoundness of mind or intoxication. Lack of capacity to contract in relation to a transaction due to unsoundness of mind or intoxication is present where it is established that the defendant: (a) was not capable of understanding the general nature of what he or she was doing by participation in the transaction; or (b) did not have the capacity to understand the transaction if it was explained. A mentally incompetent person must pay a reasonable price for necessaries supplied. `Necessaries' are goods or services suitable to the condition in life of the mentally incompetent person, and to that person's actual requirements at the time of the sale and delivery or supply.
(2)
(3) (4)
[16-350] Bird's eye view The same principles govern both mental disability and intoxication by alcohol or other drugs. Accordingly, cases involving mental disability and drunkenness will be cited without distinction. 1. The concern is with the circumstances in which a contract may be found binding notwithstanding the presence of an element of mental disability or intoxication. 2. The primary concern is not with persons in respect of whom there has been a finding under the relevant (mental health) legislation that they are incapable of managing their property and affairs, control and management of which have been vested in a committee or official. The general
13:57:48
Source: Commentary by keyword(s)
Page 1
15 of 63 DOCUMENTS: Carter on Contract/Part IV -- Parties to the Contract/Chapter 16 Capacity/3. MENTALLY DISABLED AND INTOXICATED PERSONS 3. MENTALLY DISABLED AND INTOXICATED PERSONS
General principles: (1) A contract is voidable on the basis of mental incompetence arising from unsoundness of mind or intoxication if: (a) the defendant lacked capacity to contract; and (b) the plaintiff knew of the unsoundness of mind or intoxication. Lack of capacity to contract in relation to a transaction due to unsoundness of mind or intoxication is present where it is established that the defendant: (a) was not capable of understanding the general nature of what he or she was doing by participation in the transaction; or (b) did not have the capacity to understand the transaction if it was explained. A mentally incompetent person must pay a reasonable price for necessaries supplied. `Necessaries' are goods or services suitable to the condition in life of the mentally incompetent person, and to that person's actual requirements at the time of the sale and delivery or supply.
(2)
(3) (4)
[16-350] Bird's eye view The same principles govern both mental disability and intoxication by alcohol or other drugs. Accordingly, cases involving mental disability and drunkenness will be cited without distinction. 1. The concern is with the circumstances in which a contract may be found binding notwithstanding the presence of an element of mental disability or intoxication. 2. The primary concern is not with persons in respect of whom there has been a finding under the relevant (mental health) legislation that they are incapable of managing their property and affairs, control and management of which have been vested in a committee or official. The general