Contracts Keyed to Murphy
Heights Realty, Ltd. v. Phillips
The Plaintiff, Heights Realty, Ltd. (Plaintiff), entered into an exclusive listing contract with the Defendant, Philips (Defendant), the Conservator of the estate of Johnye Mary Gholson (“Mrs. Gholson”), who was 84 years old when she signed the contract. Later, it became evident that the Defendant was mentally incapable to handle her affairs. Plaintiff brought suit to enforce its commission. At a bench trail of this matter, the Court found that Mrs. Gholson lacked the mental capacity to have entered into the contract. Plaintiff appealed, on the grounds that the conservator of Mrs. Gholson’s estate, the Defendant, could not overcome a presumption of competency.
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