Dealing with Persons with an Unsound Mind in California Law

Division 1, Part 1 of the California Civil Code has several provisions related to persons with unsound mind. Section 38 provides that a person entirely without understanding has no power to make a contract of any kind, but the person is liable for the reasonable value of things furnished to the person necessary for the support of the person or the person’s family.

Section 39 explains that a conveyance or other contract of a person of unsound mind, but not entirely without understanding, made before the incapacity of the person has been judicially determined, is subject to rescission.

A rebuttable presumption affecting the burden of proof that a person is of unsound mind exists for purposes of this section if the person is substantially unable to manage his or her own financial resources or resist fraud or undue influence. Substantial inability may not be proved solely by isolated incidents of negligence or improvidence.

Section 40 specifies that, after his or her incapacity has been judicially determined, a person of unsound mind can make no conveyance or other contract, nor delegate any power or waive any right, until his or her restoration to capacity.

Section 41 states that a person of unsound mind, of whatever degree, is civilly liable for a wrong done by the person, but is not liable in exemplary damages unless, at the time of the act, the person was capable of knowing that the act was wrongful.