Final answer:
Holly's contracts for an apartment lease and furniture rental may be void due to her status as permanently insane, which usually implies an inability to consent to contracts. Exceptions can apply for necessities, but the contracts might still be void unless a court rules otherwise for her circumstances.
Step-by-step explanation:
In the legal system, individuals who are considered permanently insane are generally presumed incapable of entering into binding contracts due to lack of mental capacity. Contracts require all parties to have the ability to understand the nature and consequences of the transaction to give proper consent. When a person is permanently insane, they are viewed under the law as not having the requisite mental capacity to consent, and therefore, any contracts they enter into are typically considered void from the outset.
This means the contracts are treated as if they never existed in the eyes of the law. However, an exception is often made for contracts for necessities such as food, clothing, shelter, and medical care, which an insane person may still enforce because these items are essential for the person's well-being. Since Holly's contracts are for an apartment lease and furniture rental, they could be seen as necessary for her living conditions. However, given her legal status, these contracts might still be void unless a court determines otherwise.