Directions: Each question consists of legal propositions/principles and facts. These principles have to be applied to the given facts to arrive at the most reasonable conclusion. Principle: 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 eff ect upon his interest. Facts: 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 came to know about this fact afterwards and now wants to file a suit against X.