What is the status of a contract made by a legally declared insane person?

A contract made by a legally declared insane person is considered void. This is because individuals who have been legally declared insane are deemed incapable of entering into contracts due to a lack of mental competency. Contracts require parties to have the mental capacity to understand the terms and implications of the agreement, which an insane person cannot do. Therefore, any contract they attempt to enter into is not valid or enforceable in the eyes of the law.

Recognizing the importance of mental capacity in contractual agreements ensures that individuals are protected from entering into obligations they do not fully understand or agree to. This principle is grounded in the legal framework that upholds fairness and accountability in contractual relationships.