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What is Mental Capacity and why must you have it to sign a document

In Australia, mental capacity refers to a person's ability to understand the nature and effect of a legal document and the consequences of signing it. Mental capacity is an important factor when signing legal documents, as it ensures that the person signing the document fully understands what they are agreeing to and the implications of their signature.

To have mental capacity to sign a legal document in Australia, a person must have the ability to:

  1. Understand the nature and effect of the document they are signing

  2. Understand the consequences of signing the document

  3. Remember the information relevant to the decision

  4. Weigh up the information and make a decision based on that information

  5. Communicate their decision in a meaningful way.

If a person lacks the mental capacity to sign a legal document, the document may be invalid. In such cases, a court may declare the document void, or a guardian or administrator may need to be appointed to make decisions on behalf of the person with reduced capacity.


If you have any concerns please contact us at Abbott & Mourly Lawyers - support@abbottmourly.com.au


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