Section 12 Indian Contract Act 1872
Section 12 of the Indian Contract Act 1872 is about What is a sound mind for the purposes of contracting. It is under CHAPTER II of the Act. CHAPTER II is titled OF CONTRACTS, VOIDABLE CONTRACTS AND VOID AGREEMENTS.
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.
See also:
Section 11 Indian Contract Act 1872 (Who are competent to contract)
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