Is a contract signed by a mentally incompetent person binding?

Saskatchewan, Canada


The following excerpt is from Sawatzky and Sawatzky v. Sawatzky, 1986 CanLII 3651 (SK QB):

The contract of a mentally incompetent person is not void per se, but is voidable if it is shown that the other party had knowledge, either actual or constructive of such mental incapacity. If the other party had no such knowledge, the contract, if fair and bona fide, is binding. See: Fykes v. Chisholm (1911), 3 O.W.N. 21; (1911), 19 O.W.R. 977.

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