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Section 12 of Indian Contract Act

What is a sound mind for the purposes of contracting.— 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.

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 or drunkenness lasts.

Varun Kumar Jha

Varun Kumar Jha

Varun Kumar Jha is a Legal Researcher and the founder of LLB Varun. The content is written and reviewed by , a dedicated legal author with an LL.B. background from Karnataka State Law University (KSLU). 🌐 Connect: LinkedIn | Contact Editor.