Shirley insists that Ira is fully competent and has no right to avoid the contract. Who will prevail? Why?
Ira, who in 2014 had been found innocent of a criminal offense because of insanity, was released from a hospital for the criminally insane during the summer of 2015 and since that time has been a reputable and well-respected citizen and businessperson. On February 1, 2016, Ira and Shirley entered into a contract in which Ira would sell his farm to Shirley for $100,000. Ira now seeks to void the contract. Shirley insists that Ira is fully competent and has no right to avoid the contract. Who will prevail? Why?
Individual I had been released from a mental institution in 2015, indicating recovery. Individual I did not exhibit any signs of mental illness or defect during the time between the release and the creation of the contract. Individual I was not under guardianship by court order. This makes it difficult for Individual I to prove they were not able to understand the subject, nature, or consequences of the contract. Because of this, the contract cannot be made void.
Individual S is going to prevail since Individual I was at normal mental capacity while entering into the contract. Individual I has had decent mental health since 2015. The contract cannot be made void.