Is a contract for a credit card legal in Michigan or Florida if the customer is mentally retarded?
Full Question:
Answer:
Contracts entered into by incapacitated people are voidable, except when a person is adjudged incompetent, those contracts are void. Contracts are voidable when the incapacity would be obvious to a reasonable person, but the the infirm has no obligation to make restitution if item is consumed or dissipated. Such contracts are voidable if the other side hasn’t performed yet. If the other side did not take advantage of the infirm person and had no reason to know of the infirmity – the contract is only voidable if the infirm can make restituition. A contracting party exposes itself to a voidable contract where it is put on notice or given a reason to suspect the other party’s incompetence such as would indicate to a reasonably prudent person that inquiry should be made of the party’s mental condition. Includes those who are insane, mentally retarded, senile, intoxicated, in shock, etc.