I am trying to understand what it means to be "incompetent" in Law. How is one judged as such?You can't tell by just looking at someone if wheteher they are incompetent or not to enter into a contract? I am really confused.

A person is presumed to be competent unless this is challenged. A court then decides whether the person is competent. Check these sites.

http://legal-dictionary.thefreedictionary.com/incompetent

http://www.jaapl.org/cgi/content/full/35/3/386?maxtoshow=&HITS=10&hits=10&RESULTFORMAT=&searchid=1&FIRSTINDEX=0&minscore=5000&resourcetype=HWCIT

In law, the term "incompetent" generally refers to a person's legal ability or capacity to understand and participate in a legal matter. It can apply to various situations, such as entering into a contract, making decisions regarding personal affairs, or standing trial.

To determine whether someone is legally incompetent, the evaluation is typically based on their mental or cognitive state. Judges or legal authorities often rely on the opinions or testimonies of medical experts, psychologists, or psychiatrists to assess whether a person has the necessary mental capacity to make informed decisions. These experts consider factors such as cognitive impairments, mental disorders, developmental disabilities, or any other condition that may affect a person's ability to understand the nature and consequences of their actions.

It is correct that you cannot tell just by looking at someone whether they are legally incompetent or not. Assessing incompetence requires an in-depth evaluation of an individual's mental capacity based on objective evidence. It is a formal legal process involving professionals who are trained to assess mental capacity and provide expert opinions.

Regarding entering into a contract, if a court determines that someone is legally incompetent, there are legal protections in place to safeguard their interests. Contracts entered into by an incompetent person can potentially be voidable or unenforceable. This is because individuals who lack the mental capacity to understand the terms and consequences of a contract may be vulnerable to exploitation, and the law aims to protect them from unfair agreements.

In summary, determining competence in legal matters involves a comprehensive evaluation of an individual's mental capacity. It is not something that can be determined by mere observation, and typically requires the involvement of experts in the field of psychology or mental health. It is important to ensure that individuals who may lack the capacity to fully understand their legal rights and obligations are protected within the legal system.