What is the test for maintaining a contract of a lunatic or a person mentally incapable of managing his affairs?

Alberta, Canada


The following excerpt is from Watmough v. Cap's Construction Ltd., 1976 CanLII 268 (AB QB):

In the case of Fyckes v. Chisholm (1911), 3 O.W.N. 21, 19 O.W.R. 977, Mulock C.J. Ex. D. at p. 22 states: “The contract of a lunatic or a person mentally incapable of managing his affairs with a person having no notice, actual or constructive, of such lunacy or incapacity, cannot be maintained unless the other party to such contract shews that it was fair and bona fide”.

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