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Capacity to enter into contract

Discussion in 'Consumer Law, Contracts, Warranties' started by Ryan455486, Jun 11, 2020.

  1. Ryan455486

    Ryan455486 Law Topic Starter New Member

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    Jurisdiction:
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    If an older person who has clear signs of mental impairment was to enter into a contract for investing and becoming 1/4 owner in a company, who's son is one of the other 4 people, how should it be done? Can a court-appointed guardian sign something like that? Is there a better option?
     
  2. adjusterjack

    adjusterjack Super Moderator

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    Very carefully.

    Yes.

    But if it happens to be the son that becomes guardian, any investment he makes in his own business with the father's money is going to be suspect.

    You'll have to get an unrelated, independent, unbiased person to become court appointed guardian of the father's finances.

    Don't scam the old guy out of his money. (Yeah, that a sarcastic assumption on my part.)
     
    justblue likes this.
  3. justblue

    justblue Well-Known Member

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    The older person should consult/hire an attorney to protect the older mans interests. What type of "mental impairment" does this older man have? Who are you in this situation?
     
  4. army judge

    army judge Super Moderator

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    If things are as you recite, it might be best for ALL parties to NOT take the gentleman's funds.

    When one asks a question involving "CAN", the answer is that anyone "CAN" do almost anything.

    The use of the word "CAN" inquires as to whether one has the ability to do something, which will very often result in YES.

    There are ALWAYS better options, especially when it comes to USING funds that don't belong to you.
     
  5. zddoodah

    zddoodah Well-Known Member

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    This question is beyond vague (even aside from the poor grammar).

    What does "clear signs of mental impairment" mean?

    Enter into a contract with whom?

    Is the contract at issue both "for investing" and for the purpose of this person "becoming 1/4 owner in a company"? In other words, is the person investing money and, in exchange for the investment, becoming an owner of the company? Or are these two things separate?

    How much money is the person investing (both in terms of dollars and in terms of percentage of his overall net worth)?

    What is the business entity form of the company (e.g., corporation or LLC or something else)?

    What does "the other 4 people" mean? You wrote that the person will become a 1/4 owner and that his son is also an owner. So there are three other owners (5 total)?

    What is your involvement in this situation?

    And, finally, what does your question mean? Are you asking us how this vaguely described transaction should be documented?

    Depends on the terms of the guardianship order. Is there a guardianship in place at this time?

    Better than what? Better for whom? Better for the "older person"? Better for his son? Better for the company? Better for the company's other owners?
     

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