NSW Contract Signed When Mentally Ill - Get Deposit Back?

[ciaran]

I signed a contract when my mental health was not at its best, and vaguely recall the details. I was not in a fit state at that time to enter any contractual agreements, and a short time later was involuntarily admitted into a psychiatric institution. How do I go about getting my deposit back under Australian Consumer Law?

 

[CathL]

Hi @ciaran

• Do you have a copy of the contract?
• What was the contract for?
• Do you remember who you dealt with and when?

 

[Sophea]

Hi Ciaran,

Under Australian contract law, you have the option to void a contract if you can prove that:

1. as a result of a mental disorder, you were unable to understand the nature of the agreement; and
2. the other party (with whom you contracted) knew or ought to have known of your lack of capacity to understand the nature of the agreement.

Two relevant cases dealing with this situation in Australia are Gibbons v Wright and Blomley v Ryan.