Contracts with a person who lacks mental capacity can be either void or what?

A person who lacks mental capacity may enter into contracts that are classified as voidable. This means that although the contract is initially valid, it may be declared unenforceable at the option of the person who lacks mental capacity (or their legal representative). The key aspect of a voidable contract is that one party has the right to affirm or reject the contract based on their mental capacity at the time of the agreement.

In contrast, a void contract is one that is not legally enforceable from the moment it is created and has no legal effect. This occurs when a party enters into a contract that is clearly beyond their legal capacity, such as a mental incompetence that is evident.

Implied contracts arise from actions or circumstances rather than explicit agreement, while unilateral contracts involve a promise made by one party in exchange for a performance of an act by another party. Express contracts are explicitly stated in written or spoken terms. These classifications do not directly relate to the status of mental capacity concerning enforceability. Therefore, the only accurate option that aligns with the treatment of contracts involving individuals with mental capacity issues is voidable.