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The relationship between Sailer and Mrs. Rick began after the death of her husband when Sailer, who managed a small investment account for the Ricks, offered to be the administrator of the estate. Alzheimer's Disease and Contracts Alzheimer's is a progressive disease that initially affects the parts of the brain that control thought, memory, and language. Case Problem Analysis 14.1: Identifying the Facts & Issues 01 Misconception #1: Mentally incompetent people can appoint a power of attorney. The issue for the court to decide was whether Mrs. Rick suffered from Alzheimer's when she entered into the land conveyance, the power-of-attorney, and will agreements, all of which benefited Sailer. The case against Madden, who has a record of mental illness and has repeatedly been found incompetent to stand trial after past felony arrests, has gained statewide attention as it revealed a. The law, though, provides a way to void some transactions and to protect the rights of the disabled (including those who are mentally incompetent) and their families. PDF Legal Position of Persons Incapable of Managing Their Own Affairs Consider including an investigation of competency in any due diligence investigation for a major business transaction where competency may be an issue. The Bank then appealed. the $30,000 she had borrowed. (For discussion see Weihofen, supra, at p. 320; Note, supra, 39 N.Y.U.L.Rev. 2d 614, 619 [3 Cal. App. True; b. Fals e. ANSWER: Fals e. Contracts entered into by mentally incompetent persons may be disaffirmed. Smalley v. Baker :: :: California Court of Appeal Decisions Souder v. Brennan (Patient-workers of non-federal hospitals, homes, institutions for mentally retarded or mentally ill individuals are entitled to minimum wage and overtime compensation). August 25, 2015 at 6:09 p.m. Bratton testified that Smalley had always seemed perfectly normal and competent to him from the time that they met to at least sometime after Mrs. Baker brought the amended modification back from Los Angeles, except that on one occasion in July of 1965, during a conversation with Bratton, Smalley broke into tears.