Directions: The question consists of two Statements - one labelled as PRINCIPLE and other as FACT. You are to examine the principle and apply it to the given facts carefully and select the best option. 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 effect upon his interests. Fact: X who is usually of sound mind - but occasionally of unsound mind enters into a contract with Y when he is of unsound mind. Y came to know about this fact afterwards and now wants to file a suit against X.