- Total Weakness (Civil Code §38): A person is “entirely without understanding.” Contracts made by them are void.
- Lesser Weakness (Civil Code §39): The person can’t make a contract because they lack the capacity to understand it, making the contract voidable. This is the standard at issue in Smalley.
- Undue Influence (Civil Code §1575): A lesser weakness of mind is unfairly exploited by another party.
The Smalley decision places manic-depressive psychosis outside the scope of §38 and §39, confirming that a diagnosis alone is not enough to prove legal incompetence.
The 1968 case, Smalley v. Baker, provides a clear illustration of the evidence courts weigh. In that case, Donald Smalley, who had a documented history of manic-depressive psychosis and multiple hospitalizations, sought to rescind a $10,000 business licensing agreement.
In its decision, the California Court of Appeal (Civ. 24865, decided June 11, 1968), sided with the defendant, Baker, on the issue of competence. The court based its reasoning on compelling evidence that demonstrated Smalley’s understanding, despite his illness:
