Washington, an insane person of limited means, entered into a contract with Lincoln for the purchase of an antique axe and a cherry tree for $100. The price paid for both of these items was fair and reasonable and, at the time the agreement was made, Washington seemed to be a normal person. Subsequently, Washington refused to take delivery of either the axe or the cherry tree, or to pay for them.

You are required to answer the following:

(a)   Can a mentally unsound person enter into a contract? Explain your answer 

(b)  Was there a valid contract between Washington and Lincoln for the purchase and sale of the antique axe and cherry tree for $100? Explain your answer 

Answer:

(a) Can a person with mental problems enter into a contract?

A. No. A person with mental problems does not have the legal capacity to sign contracts.

b) Was there a valid contract between Washington and Lincoln for the sale and purchase of the antique ax and cherry for $ 100?

A. No. For the perfection of a contract, the elements of the contract must be fulfilled. Without these elements the contract has no value.

-Capacity: It is the legal aptitude to exercise rights and contract obligations without representation of third parties.

-Consent. It arises from the presence of the offer and the acceptance of the thing and the cause that must constitute the contract.

-Objective: all things that are not out of commerce can be the object of contracts, even those that may exist in the future.

-Cause. It is the delivery or promise of a thing or service by the other party

In this case, I lack Washington's legal capacity, which is why the contract is void, and if Lincoln sued, he will surely lose the trial.