What is the stance on contracts made by intoxicated or mentally incompetent persons?

The stance on contracts made by intoxicated or mentally incompetent persons is that these contracts are voidable based on the understanding of the individual at the time the contract was formed. This means that if a person was intoxicated or mentally incompetent to the degree that they could not understand the nature and consequences of the contract they were entering into, they have the right to void the contract.

For instance, if an intoxicated individual can demonstrate that they did not have the mental capacity to comprehend their actions or the implications of the agreement, they can choose to rescind the contract. This does not mean all contracts signed by such individuals are automatically invalid; rather, it is a matter of whether they had the capacity to understand what they were agreeing to when they entered into the contract.

This legal principle protects vulnerable individuals from being unfairly bound by agreements they were not fully able to comprehend. Contracts made under these circumstances can be challenged in court, allowing individuals to seek to void the contract if necessary.