Tuesday, June 18, 2024





“A patient in a lunatic asylum, who is, at intervals, of sound mind, may contract during those intervals”.
Explain the given statement in light of the provisions of the Indian Contract Act 1872.

According to Section 11 of the Act if a person is a Major, Sound mind and not disqualified by law then he is considered to be competent to Contract.

Section 12 of the Indian Contract Act provides that a person is said to be of sound mind for making a contract if, when he makes it, he is capable of understanding it and forming a rational judgment as to its effect upon his interests.

A person who is usually of unsound mind, but occasionally of sound mind, may make a contract when he is of sound mind.

A person who is usually of sound mind, but occasionally of unsound mind, may not make a contract when he is of unsound mind.

Thus applying the provisions of Section 12 in the given case it can be concluded that if a person is of sound mind at intervals then he is competent to contract during those intervals and such a contract will be valid and enforceable in the court of law. But if the contract is entered when the person is suffering from unsoundness of mind then it will be considered void and unenforceable.

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