What describes the status of a contract entered into by a legally insane person?

A contract entered into by a legally insane person is classified as void at the outset. This means that such a contract lacks the legal validity and enforceability from the moment it is created. The law recognizes that individuals who are legally insane do not possess the mental capacity required to understand the nature and consequences of entering into a contract. Consequently, they cannot provide informed consent, which is a fundamental element necessary for the formation of a contract.

When assessing contractual capacity, the notion of mutual assent, or the meeting of the minds, is essential. In the case of a legally insane person, this mutual assent is fundamentally absent because their mental condition prevents them from comprehending the terms or implications of the agreement. Therefore, the law treats contracts made by individuals deemed legally insane as null and void, protecting them from the implications of agreements they cannot fully grasp.

The other options suggest varying degrees of validity for contracts made by individuals with mental incapacity, but given the unequivocal principle that such contracts are void from the outset, those interpretations do not align with established legal doctrine.