Final answer:
Contracts may become void when a person is legally adjudged insane and a conservator has been appointed by the court. Other circumstances like psychiatric visits or being unable to work do not alone cause contracts to be voided, but may lead to a legal declaration of insanity.
Step-by-step explanation:
The question relates to the enforceability of contracts entered into by an individual who later develops mental health issues. Under the law, contracts may become void, voidable, or remain valid depending on the mental state of the person and the recognition of their incapacity by the legal system. Contracts entered into by a person may become statutorily void when:
- The person is legally declared insane.
- A conservator has been appointed to manage their affairs.
- This is determined by a court hearing.
In this scenario, the correct answer is (D) when the person is legally adjudged insane and a conservator has been appointed following a court hearing. Visiting a psychiatrist, being unable to hold down employment, or being committed to a mental institution, voluntarily or involuntarily, do not in themselves render a contract void. However, should these actions lead to a legal declaration of insanity and the appointment of a conservator, that may change the enforceability of the contracts.