Mental Capacity to Sign Documents: Find out if you have capacity to make A Contract or Will

Are you wondering if you have the mental capacity required to sign any legal documents?

In this article, we will cover everything you need to know about mental capacity in law and how it relates to signing documents.

What is Mental Capacity in Law?

Mental Capacity to Sign Documents: Find out if you have capacity to make contract or a will
Having mental capacity means that you can make decisions regardless of how they will later affect your life. Image from Freepik.com

Mental capacity refers to a person’s ability to function normally in a real-world setting.

This ability widely depends on one’s decision-making ability.

Therefore, the decision-making capacity is an individual’s ability to make particular decisions or take actions that influence their lives.

In a legal context, mental capacity analyses whether a person’s decision-making ability is valid at the time of making a decision.

Mental capacity in law also analyses who should make decisions on one’s behalf and on what basis such substitute decisions should be made.

Hence, in the context of signing legal documents, mental capacity means that the person must have the mental ability to understand the contents of the document they are signing and the implications of signing it.

In general, capacity in law means that a person is free to make decisions about their lives, even where the decisions are regarded as unwise and subject to the limits of the law.

A range of conditions and disabilities can affect a person’s capacity. For example, a person with dementia, more so Alzheimer’s disease does not have capacity since their ability to remember impairs their capacity.

Divergently, an insane person can make a will during an interval (lucid interval) when he is of sound mind.

Who Has Mental Capacity in Law?

In general, anyone over the age of 18 is presumed to have mental capacity in law unless there is evidence to suggest otherwise.

However, there are some situations where a person’s mental capacity may be called into question. For example, if they have a cognitive impairment or are under the influence of drugs or alcohol.

In law, legal capacity recognizes the legal right of someone to exercise their rights and legal status.

Legal capacity is the cognitive ability considered necessary to exercise one’s legal right.

For example, having the right to choose where and with whom you wish to live, what contract to form, who to marry, and who to vote for are some of the manifestations of legal capacity.

How is Mental Capacity in Law Measured?

Mental capacity is not an all-or-nothing concept. A person may have full mental capacity, partial mental capacity, or no mental capacity at all.

The decision on whether a person has the capacity or competence to make decisions is a legal and sometimes a judicial determination that strongly relies on medical evidence.

The determination must be made by an attorney based on information gleaned by the attorney in interactions with clients or from other sources such as family members, social workers, and medical personnel where applicable.

In guardianship or probate causes, the determination will be made by the judge.

Therefore, doctors and psychiatrists alone cannot determine whether an individual has the capacity to undertake a legal commitment. Their job is to simply provide evidence (a professional evaluation of the individual).

Mental Capacity to Sign Documents: Find out if you have capacity to make contract or a will
A doctor and a psychiatrist cannot determine if one lacks capacity. They can only produce an evaluation report. Image from Freepik.com

What is the Mental Capacity to Sign Legal Documents?

The mental capacity required to sign legal documents varies depending on the type of document and its complexity.

In general, a person must have the ability to understand what they are signing and the implications of signing it.

Nonetheless, before you sign and execute legal documents you need an attorney.

It is necessary to have an attorney because one needs a third party to assess their capacity. Additionally, a lawyer ensures that the formal legal requirements are followed.

What is the Required Mental Capacity to Sign a Will and Other Legal Documents?

The required mental capacity to sign a will or other legal document depends on the complexity of the document and the laws of your state.

Generally, an individual with sound mental capacity has the ability to make or sign a will.

Therefore, anyone who’s in a condition of mind where they are unsure of what they are doing, whether due to intoxication, illness, or any other reason lacks the capacity to make a Will.

The courts as in the case, In re Estate of Kumstar, 66 N.Y.2d 691, 692 (N.Y. 1985) listed three important standards to determine the mental capacity when signing a will:

  1. Whether the person signing the will understood the nature and consequences of executing a will
  2. Whether the person signing the will knew the nature and extent of the property they are disposing of
  3. Whether the person knew those who would be considered to inherit their bounty and their relations with them

Do I Need Mental Capacity to Sign All Legal Documents?

Mental Capacity to Sign Documents: Find out if you have capacity to make contract or a will
When signing important legal documents, you should always have an attorney by your side. Image from Freepik.com

Yes, you need the mental capacity to sign all legal documents.

If you do not have mental capacity, any legal documents you sign may be invalid.

The mental capacity for entering into a contract requires a higher standard compared to that in other legal documents such as a will. A person who cannot recall simple facts cannot have the capacity to enter into a contract. However, such a person can make a will

What is the Mental Capacity to Sign a Contractual Document?

The mental capacity required to sign a contractual document varies depending on the complexity of the contract and its terms.

In general, a person must have the ability to understand what they are signing and the implications of signing it.

The standards for entering a contract into a contract require that the person:

What are the Four Elements of a Contract Agreement Capacity?

The four elements of contract agreement capacity are:

  1. Understanding: The person must understand what they agree to.
  2. Voluntariness: The person must be signing the contract voluntarily.
  3. Competence: The person must have the mental capacity to sign.
  4. Legality: The contract must be legal.

Conclusion

Understanding mental capacity is essential when it comes to signing legal documents.

If you are unsure whether you or someone else has the required mental capacity, it is always best to seek legal advice before signing any documents.

Frequently Asked Questions

Difference Between Mental Capacity and Testamentary Capacity?

Testamentary capacity refers specifically to a person’s ability to make a valid will.

When making a will, a person needs to understand what they are doing when making the will and that they have an understanding of their assets and who their beneficiaries are.

When is a Client’s Mental Capacity in Doubt?

A client’s mental capacity may be in doubt if they have a cognitive impairment or if there is evidence that they do not understand what they are doing when they sign legal documents.

For contracts, capacity is undermined by evidence of Fraud, misrepresentation and undue influence.

Is There a Relationship Between Mental Capacity and Mental Illness?

There can be a relationship between mental capacity and mental illness, but having a mental illness does not necessarily mean that a person lacks mental capacity.

Mental illness can affect a person’s decision-making abilities, but it does not always do so.

However, in some cases, the capacity of a person may change from day to day (or even during the day) depending on the side effects of their medications.

Therefore, in such cases, such a person will lack the mental capacity to sign any legal documents in question.