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Principle: A person, who is usually of unsound mind, but occasionally normal, may make a contract when he is not of unsound mind. Facts: ‘A’ generally remains in the state of unsound mind and rarely becomes capable of understanding the things. (Answer the question after reading the following paragraph.)

Principle: A person, who is usually of unsound mind, but occasionally normal, may make a contract when he is not of unsound mind. Facts: ‘A’ generally remains in the state of unsound mind and rarely becomes capable of understanding the things. (Answer the question after reading the following paragraph.)

The question in this section consist of legal proposition(s) (hereinafter referred to as ‘principle’) and facts. Such principles may or may not be true in the real and legal sense, yet you have to conclusively assume them to be true for the purpose of this section. In other words, in answering the following question. Further, you must not assume any facts other than those stated in the question. The objective of this section is to test your interest towards study of law, research aptitude and problem solving ability, even if the ‘most reasonable conclusion’ arrived at may be absurd or unacceptable for any other reason.To answer a question, the given principle is to be applied to the given facts so as to arrive at most reasonable conclusion.

Option A: A’ can make a contract when normal.
Option B: A’ can make a contract only for his own benefit
Option C: A’ can never make a contract.
Option D: 4. ‘A’ can make a contract at any time whenever he pleases.

Correct Answer

Option: a

Explanation

According to Section 12 of the Indian Contract Act 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.

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