What type of contract is considered void when made with a person that is judicially declared insane?

A contract made with a person who has been judicially declared insane is considered void because such individuals do not have the mental capacity to enter into binding agreements. The law recognizes that a person who has been deemed insane by a court lacks the ability to understand the nature and consequences of their actions, which is a fundamental requirement for a valid contract. The principle behind this is to protect individuals who cannot make informed or rational decisions due to their mental state, ensuring that they are not taken advantage of in contractual situations.

In contrast, contracts involving minors or intoxicated individuals can sometimes be voidable rather than void. Minors can disaffirm contracts upon reaching the age of majority, and intoxicated individuals may affirm contracts if they regain sobriety and demonstrate capacity. Therefore, the specific legal status of being judicially declared insane creates a categorical prohibition on the validity of contracts, distinguishing it from other situations involving lack of capacity.