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Ch 10 Dynamic for Reflection

Ch 10 Dynamic for Reflection

Q Ortelere, a retired teacher, has built up a substantial amount of funds in her retirement plan before she retired because of "involutional psychosis" (a form of mental illness). She has previously specified that a lowered monthly retirement benefit would be paid to her so that her husband would get some benefit from the retirement plan if she died before he did. Ortelere encounter some mental problems and after her mental problems began, she changed her payout plan and borrowed from the pension fund. As a consequence of the changes she made, her husband lost his rights to benefit. Two months after she made the changes, she died. The husband sued to reverse the changes his wife made, claiming she was not of sound mind when she made them. Will the changes in the plan be voided? Brief answers are not sufficient, please explain your answer. (strictly deal with the change she made after the mental problem.)

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I think that this is a clear case of contract of a person who is mentally incompetent. In this case, Ortelere was the individual who had been mentally incompetent to run and operate her financial payout plan and control or regulate her pension fund. It is evident from the case and the situation of Ortelere that Ortelere had been mentally incompetent when she had made the election of the beneficiary of her financial payout plan. This is a critical situation because if Ortelere had been completely mentally incompetent, then she would not have been able to change her financial payout plan and borrow from her pension fund.