Question:
Principle: A person is of sound mind for making a contract if, at the time of making it, he is capable of understanding it and forming a rational judgment about its effect on his interests.
Facts: Mr. X, usually of sound mind but occasionally of unsound mind, enters into a contract with Mr. V when he was of unsound mind. Later, Mr. Y, upon learning this, wants to sue Mr. X.
Principle: A person is of sound mind for making a contract if, at the time of making it, he is capable of understanding it and forming a rational judgment about its effect on his interests.
Facts: Mr. X, usually of sound mind but occasionally of unsound mind, enters into a contract with Mr. V when he was of unsound mind. Later, Mr. Y, upon learning this, wants to sue Mr. X.
Facts: Mr. X, usually of sound mind but occasionally of unsound mind, enters into a contract with Mr. V when he was of unsound mind. Later, Mr. Y, upon learning this, wants to sue Mr. X.
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For persons with intermittent unsoundness, the presumption is against capacity—proof of soundness at the exact time of contract is essential.
Updated On: Aug 11, 2025
- Mr. X cannot enter into contract because he is of unsound state of mind when he entered into contract.
- Mr. X can enter into contract but the burden is on the other party to prove that he was of unsound state of mind at the time of contract.
- Mr. X can enter into contract but the burden is on Mr. X to prove that he was of sound state of mind at the time of contract.
- None of these.
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The Correct Option is C
Solution and Explanation
When a person is known to have episodes of unsoundness, the law presumes unsoundness at the time of contract unless proven otherwise. Therefore, the burden lies on Mr. X to show that he was of sound mind during the specific transaction. Only if he proves this will the contract be valid.
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