Indian Contract Act, 1872
12. What is a sound mind for the
purposes of contracting
A person is said to be of sound mind for the purposes of making
a contract, if , at the time when he makes it, he is capable of understanding
it and of 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.
Illustrations
(a) A patient in a lunatic asylum who is at intervals of sound
mind, may contract during those intervals.
(b) A sane man, who is delirious from fever, or who is so drunk
that he cannot understand the terms of a contract, or form a rational judgment
as to its effect on his interests, cannot contract whilst such delirium of
drunkenness lasts.