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The question here is whether she had the ability to enter into a legally binding contract. In Texas, like most states, a person must have the necessary mental capacity to contract. For example, a person who's mentally disabled cannot contract. Here, you would have to argue that your daughter didn't have the capacity to contract, and that the contract was void when signed. The issue you have is proving it. Obviously, you have a letter from the doctor, but they don't have to accept that and could force you to sue them. The question then becomes whether the expense of a lawsuit is worth the deposit you are trying to recover.