Question

Krebs had a history of frequent admissions to various types of mental institutions. Krebs was not considered dangerous and, in fact, would experience lengthy intervals of lucidity between recurrent mental problems. During one such lucid interval, Krebs entered into a contract to purchase a new car. Later, Krebs sought to avoid the contract on ground of incompetence. Can she do so?

Answer 1

Yes, she can avoid the contract.

She enter the contract in the lucid intervals which is not for necessities the contract is void and can be avoided.

Persons who have been identified with a mental incapacity, and as such are defined under the Mental Capacity Act 2005 as a ‘patient’, are protected from entering contracts. The consequence is that any agreement made which purports to be a contract will be void. This is the situation even if the other party was not aware of the ‘patient’s’ incapacity except for necessities supplied to him.