Question

An insane person enters into a contract with another during the period of sanity. The contract so entered is ______.

• A. Valid contract
• B. Contract by Fraud
• C. Voidable at the option of the insane person
• D. Void ab initio

Hint:

A contract during a lucid interval is valid, reflecting the person's mental capacity at that time.

Answer 1

The Correct Option is A

To determine the validity of the contract entered by an insane person during sanity:
1. Under Section 11 of the Indian Contract Act, 1872, a person of sound mind can enter into a contract, and a period of sanity qualifies as such a state.
2. If an insane person enters a contract during a lucid interval (period of sanity), the contract is considered valid, as per Section 12, unless proven otherwise.
3. It is not voidable, fraudulent, or void ab initio under these circumstances.
Therefore, the correct answer is (1) Valid contract.