Case study: Mental capacity consequences

Effects on mental ability

Mental capacity to enter in a contract is an individual’s ability understand and to appreciate the consequences. A 2020 Journal of the American Medical Association article states that there are three factors that can affect an individual’s ability to enter into a contract: cognitive impairment, emotional distress and external pressure or influence. Calvin’s stroke could have affected his cognitive capabilities and rendered him susceptible to emotional distress. He may not be able to sign a contract because of this. Calvin will need to show evidence of cognitive impairment or emotional distress in order to establish that Calvin was not capable of selling the penny. These could be medical records, testimony or statements from his therapist. Billy may need to prove that he exerted undue control over him. This is defined as “unfairly persuading a vulnerable individual to act in an way that isn’t in their best interests” (Bachman 2019, 2019). Coercing, manipulating, or taking advantage of the victim’s trust, dependency, or withholding vital information are all examples of undue influences.

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