Legal Principle: A person is said to be of sound mind for the purpose of making a contract if, at the tie when he makes it, he is capable of understanding it and of forming a rational judgement as to its effect upon his interest.Factual Situation: X who is usually of sound mind, but occasionally of unsound mind enters into a contract with Y when he (X) is of unsound mind. Y comes to know about this fact later and wants to file a suit against X. (CLAT 2013)

Each question consists of legal principle(s) (hereinafter referred to as 'principle') and facts. Such proposition may or may not be true in the real and legal sense, yet you have to conclusively assume them to be true for the purposes of this section. You have to apply the principles to the given facts to arrive at the most reasonable conclusion. Only one of the alternatives, i.e., (A), (B), (C), or (D) is the most reasonable conclusion. Remember: you must not rely on any principle except the principles that are given for every question.