(B) Person of sound mind:
According to section 12 of Indian Contract Act, “a person is said to be of sound mind for the purposes of making a contract if, at the time when he makes it is capable of understanding it and of forming a rational judgement as to its euect 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.
Example 1: A patient in a lunatic asylum, who is at intervals, of sound mind, may contract during those intervals.
Example 2: 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 judgement as to its euect on his interests, cannot contract whilst such delirium or drunkness lasts.
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.
Example 1: A patient in a lunatic asylum, who is at intervals, of sound mind, may contract during those intervals.
Example 2: 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 judgement as to its euect on his interests, cannot contract whilst such delirium or drunkness lasts.
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