A person’s competency to make agreements or undertake other obligations may in certain cases endanger his or her financial interests. These cases are especially likely to occur when the individual makes important decisions while failing to take the advice of the guardian.

In such cases, the District Court may, upon petition, restrict the competency of the person. For instance, the Court may order that he or she is incompetent to incur debt or to enter into transactions concerning given property.

The District Court must not restrict the competency of the person more than what is necessary for protecting him or her.