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:

The ability to understand the nature and consequences of one's actions at the time of contract formation is key to determining the validity of the agreement under contract law.

Answer 1

The Correct Option is A

If an insane person enters into a contract during a period when they are sane, the contract is considered valid. The law recognizes the contract as binding since it was made during a time when the person had the legal capacity to make decisions.