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Sherman, a money manager in New York, is brilliant and successful, but he has always suffered from bipolar disorder, which means that his mood will
- Sherman, a money manager in New York, is brilliant and successful, but he has always suffered from bipolar disorder, which means that his mood will often swing sharply between almost manic enthusiasm and bouts of deep depression. In recent years the disorder has become more severe. He has prescription medication to deal with it, but he is not good about taking the medication regularly.
- One day, while playing golf at a private course where he was taken by a friend, he starts chatting with the clubhouse manager.
- The manager mentions that the club has not been profitable lately and that the property is for sale, perhaps to a developer who will convert it into another use.
- Sherman is intensely interested and immediately calls the club president, who puts him in touch with the real estate broker who is representing the property.
- Sherman meets with the broker a few hours later and gets a few more details; and on the spot, he agrees to buy the property.
- Sherman tells the broker that he will pay the full listed price of $3.2 million provided they can get the deal done that evening, saying that he does not want anyone else to have a chance at it.
- The broker is surprised by the speed of his decision, but Sherman waves a hand, gives the broker a business card, and explains what he does.
- As a high-level money manager, Sherman is used to making quick decisions, he says, and this is, for him, a relatively small-potatoes deal. When you wait around, he says, you lose the chance for a great deal. He who hesitates is lost. A couple of hundred thousand on the purchase price, he says (waving a hand airily) will not make much of a difference in the success of the project he has in mind.
- Sherman does not say exactly what the project is that he has in mind.
- The broker, excusing herself for a few minutes, ostensibly to go to the restroom, does a quick Internet check and determines that Sherman is exactly who he says he is. She finds him to be loud and overbearing and thinks he laughs too much sometimes for no apparent reasonbut his credit is good.
- The broker quickly prepares a brief memorandum which they both sign.
- Sherman hands her a personal check for $50,000 as earnest money.
- The next day the broker deposits the check and it clears without difficulty.
- Right about the same time, though, Sherman tries to kill himself and thankfully is not successful. Discovered by his housekeeper, he is rushed to the hospital for treatment. He is examined thoroughly. Physicians from the hospital will testify he had previously tried to kill himself and had stopped taking his medication.
- On the night of the golf course deal, the physicians will testify, that Sherman was under the influence of his disorder and unable to make fully rational decisions.
- Sherman wants to get out of the golf course deal, saying that he was in the manic stage of his disorder and should not be held to the deal.
- The golf course owners want to hold him to it.
Might Sherman void the deal on the grounds of incapacity? Why or why not?
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