When an adult is placed under conservatorship, relatives and businesses may assume that the person can no longer enter into any binding agreement. California law is more nuanced.

A conservatorship can affect contractual capacity, but the analysis depends on the nature of the conservatorship, applicable statutory provisions, and the circumstances of the transaction.

Does Conservatorship Eliminate Contractual Rights?

The appointment of a conservator does not mean that every right or legal capacity disappears.

Different rules may apply depending on whether the court has appointed a conservator of the person, a conservator of the estate, or both.

The scope of the appointment and any relevant court orders should be examined before making assumptions about contractual authority.

Capacity to Understand a Transaction

California law recognizes standards addressing a person's capacity to make particular decisions.

An individual may understand a relatively simple transaction while lacking the ability to evaluate a complicated financial agreement.

The timing of the transaction can also matter because cognitive functioning may fluctuate.

Contracts Involving Property

Transactions affecting property subject to a conservatorship can involve additional restrictions.

A conservator of the estate generally has responsibilities concerning the management and protection of the conservatee's assets.

Certain transactions may require court authority, and agreements entered into without appropriate authority may be subject to challenge.

What Should a Business or Family Member Do?

Before accepting a significant contract from someone under conservatorship, the other party should determine whether the individual has the necessary legal capacity and authority.

Relevant documents may include the letters of conservatorship, appointment orders, and any orders granting or limiting specific powers.

Key takeaways

• Conservatorship does not support a blanket assumption about every contractual right.

• The nature of the appointment and particular transaction can affect legal capacity.

• Significant property transactions should be reviewed before documents are signed.

California conservatee contract capacity requires a careful examination of law and facts. For Los Angeles County families, preventing an unauthorized transaction may be easier than attempting to undo it afterward.

This article provides general information, not legal advice. For questions about conservatorship and contractual authority, call Westlake Law Group at (818) 444-2022. 30699 Russell Ranch Road, North Building, Suite 210, Westlake Village, California. Virtual consultations are available throughout Southern California.

Educational links:

• https://leginfo.legislature.ca.gov/faces/codes.xhtml

• https://selfhelp.courts.ca.gov/conservatorship