THE POSITION OF A PERSON OF UNSOUND MIND IN CONTRACT
THE POSITION OF A PERSON OF UNSOUND MIND It has already been noted according to Section 11, only a person of sound mind is competent to contract. It means that if a person is of unsound mind, he is incompetent to contract just like a minor. He is not capable of transferring any property by a deed of gift, etc., and a transfer by him would be void ab initio (Section 12, para 2). What is a sound mind for the purpose of making a valid contract has been defined by Section 12 as under: "A person is said to be of sound mind for the purpose 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." Soundness of mind is required only at the time of making a contract. It is possible that a person who is usually of unsound mind, but occasionally of sound mind, may make a contract when he is of sound mind. It means that even a person who is usually of unsound mind can make a ...