Case study: Mental capacity consequences
Mental capacity to enter into a contract refers to an individual’s ability to understand and appreciate the consequences of entering into a legal agreement. According to a 2020 article in the Journal of the American Medical Association, factors that may affect an individual’s mental capacity to enter into a contract include “cognitive impairment, emotional distress, and outside pressure or influence.” In Calvin’s case, his stroke may have impaired his cognitive abilities and left him vulnerable to emotional distress, potentially affecting his mental capacity to enter into a contract. To prove that Calvin did not have the necessary mental capacity when he authorized Billy to sell the penny, Calvin would need to provide evidence of his cognitive impairment and emotional distress. This could include medical records or testimony from his doctor or therapist. Calvin may also need to show that Billy exerted undue influence over him, which is defined as the “unfair persuasion of a vulnerable person to act in a way that is not in their own best interest” (Bachman, 2019). Examples of undue influence include coercing or manipulating the victim, taking advantage of the victim’s trust or dependency, and withholding important information. Cont…
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