Introduction
Contractual capacity is a critical element in enforcing negotiated terms because all parties should be able to understand the set performance obligations when entering an agreement. The legality of a contract denotes the ability to hold a party culpable for unintended outcomes, especially the liability claims that arise from non-performance. Calvin, who suffered a stroke and was undergoing therapy, had a questionable mental capacity to agree with Billy on selling his 1943 Lincoln copper penny. However, Billy and Calvin’s 5% commission agreement upon the 1943 Lincoln copper coin sale was an oral contract that was legally binding because each party executed the contractual obligations. Therefore, this paper answers the two questions about how Calvin could prove to a court the incapacity and undue influence of Billy towards the coin sale. The argument is that, although Billy engaged Calvin before full recovery, the latter party deliberated and understood the contract conditions before providing consent.
Mental Capacity
Calvin had the mental capacity to enter into the contract with Billy because he understood the meaning of the coin sale or the effect it would have on his medical bills and financial condition. According to Valbrune and De Assis (2019), the cognitive standard for mental incapacity requires that a contract be voidable only if the disadvantaged party is incapable of processing an understanding of the contract. Although Calvin has an impaired judgement on how a coin auction works or what Billy should have done to fetch the best prices, he was aware of the sale and the 5% commission. Valbrune and De Assis (2019) observed that impaired judgement could not be used as mental incapacity. Therefore, each party in the contract had the mental capacity to understand contractual obligations, which does not encompass the failure to read the offers and counter-offers contained in the covenant.
Reading the unreadable in a covenant setting implies conducting due diligence before consenting to the obligations. According to Benoliel and Becher (2019), the failure to explore contract requirements does not trigger a contractual mistake that could make the agreement voidable. Calvin would have to prove to the court that the stroke incident impaired rationality and autonomy in making critical decisions such as the penny business. According to Scott (2019), the simplest way to prove mental incapacity is when an individual has been subject to plenary guardianship while entering the contract. In Calvin’s case, he would argue that Billy surpassed the guardian/authority and only exerted undue influence over Calvin about the coin deal.
Undue Influence
Billy did not exert undue influence over Calvin about the contract. The rationale is that Billy did not dominate Calvin’s will. He was primarily concerned about Calvin’s mounting medical bill, which the 1943 Lincoln copper penny could solve. According to Scott (2019), a party can invoke the undue influence doctrine as an alternative to mental incapacity by proving undue susceptibility or pressure from the opposite party. However, the case between Calvin and Billy shows that the former had an adequate duration to deliberate the contract before providing his consent.
Conclusion
I think Calvin does not have a case to void the contract between himself and Billy based on the mental incapacity and undue influence theories. The rationale is that Calvin fully understood the eventual outcomes if he allowed Billy to sell the 1943 Lincoln copper coin. Moreover, Calvin had enough time to deliberate the significance of the coin sale on his mounting medical bills before providing consent. Despite having suffered a stroke, the only disadvantage to Calvin was that he had an impaired judgment on how the auction would take place to fetch the best price.
References
Benoliel, U., & Becher, S. I. (2019). The duty to read the unreadable. Boston College Law Review, 60(8), 2255–2296. Web.
Scott, S. M. (2019). Contractual incapacity and the Americans with Disabilities Act. Dickinson L. Rev., 124, 253-318. Web.
Valbrune, M., & De Assis, R. (2019). Capacity and legality. OpenStax. Web.