Faber v. Sweet Style Mfg. Corp.
Supreme Court of New York, Nassau County
242 N.Y.S.2d 763 (1963)
In September 1961, Faber (plaintiff) contracted to buy land from Sweet Style Manufacturing Corp. (SSMC) (defendant). Faber suffered from manic-depressive psychosis and was in a manic phase at the time. Normally frugal and cautious, Faber suddenly hired a title company, an architect, and laborers, built a sign, and filed permits, all within two weeks and before closing. Two weeks after signing, he was hospitalized for his condition. Experts disagreed on whether he was competent at the moment he signed, so Faber sued to rescind the contract on grounds of incompetence.
Whether a contract is voidable when a party enters into it under the compulsion of a mental disease or disorder that caused the contract, even if the party technically understood its terms.