Scott v Wise - [1986] 2 NZLR 484

Contract — Capacity of parties — Unsoundness of mind — Test of capacity — Protected person under Mental Health Act 1969, suing by his guardian, sought declaration that a series of transactions, including establishment of family trust and sale of farm to trustees, were invalid on ground of incapacity and fairness — Whether the transactions fell within the rules about contracts with a person of unsound mind — Whether a contract made by a person of unsound mind could only be set aside if the other contracting party knew of the incapacity — Whether the transactions should be set aside.