Is a person mentally incapable when they are unable to understand the nature and terms of the contract?

British Columbia, Canada


The following excerpt is from iFinance Canada Inc. v. B.M., 2021 BCCRT 164 (CanLII):

28. So, in law a person is mentally incapable when they are unable to understand the nature and terms of the contract and are unable to form a rational judgment of its effect on their interests: see RMK citing Fowler Estate v. Barnes et al, 1996 CanLII 11726 (NLSC) at paragraphs 25 and 26.

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