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Legal 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 judgement as to its effect upon his interests Factual Situation: Mr X who is usually of sound state of mind, but occasionally of unsound state of mind, enters into a contract with Mr Y when he was of unsound state of mind. Mr Y having come to know about this fact afterwards, wants to file a suit against Mr X. Decision:

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Legal 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 judgement as to its effect upon his interests Factual Situation: Mr X who is usually of sound state of mind, but occasionally of unsound state of mind, enters into a contract with Mr Y when he was of unsound state of mind. Mr Y having come to know about this fact afterwards, wants to file a suit against Mr X. Decision:






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