Chesson v. Pilot Life Insurance Company

The executed contract of a mentally incompetent person is ordinarily voidable and not void. Reynolds v. Earley, 241 N.C. 521, 85 S.E. 2d 904; Walker v. McLaurin, 227 N.C. 53, 40 S.E. 2d 455; Carawan v. Clark, 219 N.C. 214, 13 S.E. 2d 237. If, however, the person has been adjudged incompetent from want of understanding to manage his affairs and the court has appointed a guardian for him, he is conclusively presumed insane insofar as parties and privies to the guardianship proceedings are concerned; as to all others, it is presumptive (but rebuttable) proof of the ward’s incapacity. Medical…