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In order to execute a durable power of attorney, a client has to have contractual capacity. Contractual capacity means that the person has the ability to understand the nature and effect of the act and the business being transacted.
A general power of attorney allows the agent to make a wide range of decisions. This is your best option if you want to maximize the person's freedom to handle your assets and manage your care. A limited power of attorney restricts the agent's power to particular assets.
A party contesting the will has to provide evidence to the court to show that the person did not have a sound mind at the time they signed the will. The court can call upon witnesses who saw the person signing the will, to determine mental capacity.
Primary tabs. In contract law, a person's ability to satisfy the elements required for someone to enter binding contracts. For example, capacity rules often require a person to have reached a minimum age and to have soundness of mind.
The following steps are usually involved when making a determination of competency:Visiting the doctor for a complete physical evaluation.Gathering insight.Utilizing psychological tests or assessments.Evaluating current functioning and comparing it to prior functioning.Requesting a complete mental evaluation.