Can a person of sound mind make a contract?
According to Sec.11 only a person of sound mind can make a contract. Sec. 12 further defines the term sound mind in these words, “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 interest…”.
What is the difference between sound and unsound mind?
However, a person who is usually of sound mind but occasionally of unsound mind may not make the contract when he is of unsound mind whereas a person who usually is of unsound mind but sometimes becomes sound can contract in those intervals when he is sound. In Nilima Ghosh v.
When is a person of unsound mind?
It is assumed that person of unsound mind is also weak for rational judgment over the objective, understanding the terms and conditions of the contract, and judgment of consequence. when he/she makes it is capable of understanding it and of forming a rational judgment as to its effect upon his/her interest. 1.
What is meant by a person of sound mind?
Thus a person of sound mind is a person who can decide what is right and what is wrong. A sound mind is one of the essential elements of a valid contract. Io be a valid contract, both the parties involved in it must be of sound mind it an agreement is made with a person of unsound mind, it will be void.
When can an unsound mind enter into a contract?
It is important to note that a person who is usually of an unsound mind, but occasionally of a sound mind, can enter a contract when he is of sound mind. No person can enter a contract when he is of unsound mind, even if he is so temporarily. A contract made by a person of an unsound mind is void.
Who is person of unsound mind in contract?
Under English law, a person of unsound mind is competent to contract, although he may avoid his contract if he satisfies the court that he was incapable of understanding the contract and the other party knew it. The contract is voidable at his option.
Why a person of unsound mind Cannot make a contract?
Person of Unsound Mind The mental incapacity prevents the person from understanding the transactions and also the awareness of its implications. An agreement or contract with an unsound mind person stays inoperative and void. But such a person cannot avail any benefits from the contract.
Who is a person of unsound mind in Indian contract Act?
On the other hand under Indian law a person of unsound mind when is state of unsoundness is not competent to contract. The agreement of a person of unsound mind is void, Amina Bibi v. Saiyid Yusuf (ILR (1922) 44 All 748).
What is unsound mind?
mentally illDefinition of of unsound mind : mentally ill : not sane She claims that her father was of unsound mind when he changed his will.
How do you declare unsound mind?
The Code provides that if the accused is of unsound mind at the time of the inquiry or trial, and therefore, incapable of making his defence, the Magistrate or the Court (as the case may be), must ascertain on evidence, including medical evidence, whether, in fact, the accused is of unsound mind.
Who Cannot make a contract?
The law recognizes three categories of individuals who lack the capacity to contract: minors, individuals with psychological disabilities, and intoxicated persons. If anyone from these categories enters into a contract, the agreement might be considered "voidable" by them.
Does unsound mind enter into contract of insurance?
Statement B: The person with unsound mind cannot enter into an insurance contract.
Who are disqualified to contracts?
Following are disqualified to enter into contract: Convicts. Insolvent Person. Alien enemy.
What are the types of persons of unsound mind?
When a person is unable to understand things, he is said to be of unsound mind. Idiocy, madness, alcoholism, and mental degeneration are all examples of unsoundness.
How do you prove someone is not of sound mind?
To determine whether the person had a sound mind and memory at the time of the making of the will, the court will examine whether the person understood what possessions they owned, whether the person understood the relationship between them and the people receiving their possessions, and whether the person understood ...
How many types of unsound mind are there?
The words 'unsoundness of mind' include following kinds of persons: Idiot i.e. a person who is insane since birth. Lunatic i.e. a person who has acquired madness after birth either due to disease or injury. Non compos mentis i.e. a person who does not have a control over one's mind.
What are the types of persons of unsound mind?
When a person is unable to understand things, he is said to be of unsound mind. Idiocy, madness, alcoholism, and mental degeneration are all examples of unsoundness.
How many types of unsound mind are there?
The words 'unsoundness of mind' include following kinds of persons: Idiot i.e. a person who is insane since birth. Lunatic i.e. a person who has acquired madness after birth either due to disease or injury. Non compos mentis i.e. a person who does not have a control over one's mind.
Who are persons disqualified by law?
Persons disqualified by lawAlien enemy: A person who is an Indian citizen is called an alien or non-citizen of the Republic of India. ... Convicts: A convict is a person, who is sentenced by a competent court to the death sentence or imprisonment.More items...•
Which of the following person do not fall under the category of person of unsound mind?
What is the minimum salary under which the persons are covered in this act?...Q.Which of the following person do not fall under the category of persons of unsound mind?C.IdiotsD.Blind PersonAnswer» d. Blind Person2 more rows
Who discusses the capacity to enter into contracts with Person of Unsound Mind?
In this article, Abhishek Mishra discusses the capacity to enter into Contracts With Person Of Unsound Mind.
What is the meaning of sound mind in Indian contract?
According to section 12 of The Indian Contract Act,1872, A person is said to be of sound mind for the purposes 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. In Kanhaiyalal v.
What does it mean when a person is unable to make decisions for himself?
A person is considered as unable to make decisions for himself if he fails to understand the information relevant to the decision, to retain that information, to make use of that information for making the decision, or to communicate his decision by talking, using sign language or any other means.
Is a person of unsound mind void?
On the other hand under Indian law a person of unsound mind when is state of unsoundness is not competent to contract. The agreement of a person of unsound mind is void, Amina Bibi v. Saiyid Yusuf (ILR (1922) 44 All 748). However, a person who is usually of sound mind but occasionally of unsound mind may not make the contract when he is of unsound mind whereas a person who usually is of unsound mind but sometimes becomes sound can contract in those intervals when he is sound. In Nilima Ghosh v. Harjeet Kaur (AIR 2011 Del 104) it was discussed that the most relevant thing for declaring an agreement void is whether the person in question was suffering from mental disability on the date of execution of the agreement.
What is the purpose of contract law?
The basic purpose of contract law is to provide a framework within which individuals can freely contract. The word freely means that there should be full and free consent of the parties. Consent can be free only when it is rational and deliberate. Rational consent can only be given when a person is of sound mind.
Is there a presumption of insanity?
In every case initially, the presumption is in favour of sanity but the presence or absence of it at the time of making the contract is a question of fact in all cases. It is immaterial that the person was insane in a previous or a post time after the point of time when the contract was made except for it is likely to create a suspicion of likelihood of such disorder at the time of formation of contract, M’Adam v. Walker ( (1813) 1 Dow 148 (HL)). The onus of proving insanity is on the person who alleges it, Mahomed Yakub v. Abdul Quddus (AIR 1923 Pat 18717). In Lakshmi v. Ajay Kumar (AIR 2006 P&H 77) it was held that it must be proved that the point of insanity was at the time of formation of the contract. In Mohanlal Madangopal Marwadi v. Sadasheo Sonak (AIR 1941 Nag 251), it was held that, in the case where a person is usually of unsound mind, the burden of proving that he was of sound mind at that time lies on the person who affirms it. Whereas, in the case where a person is usually in a sound state of mind the burden of proving that he was in an unsound state of mind lies upon the person who challenges the validity of the contract. However, in case of drunkenness or other cause, the onus lies on party who sets up that disability to prove that it existed at the time of the contract and it has to be proved that the party was so drunk as to unable to comprehend the meaning and effects of an agreement, and, under the English law also that the other party was aware of his condition.
When can rational consent be given?
Rational consent can only be given when a person is of sound mind. The author through this article will try to do an analysis of the role of unsoundness of mind in case of a contract with the help of statutes, case laws and judgements with respect to English and Indian law.
What are the rules for a person with an unsound mind?
1. A person who is usually of unsound mind but Occasionally of the sound mind may make a contract when he/she is of sound mind. 2. A person who is usually of sound mind but occasionally of unsound mind may not make a contract when he/she is of unsound mind. 3.
What is a sound mind?
A sound mind is such a mental state in which a person is capable of understanding a case correctly and can make a rational judgment as to its impact upon him. Thus a person of sound mind is a person who can decide what is right and what is wrong.
Is an Io contract valid?
Io be a valid contract, both the parties involved in it must be of sound mind it an agreement is made with a person of unsound mind, it will be void. It is assumed that person of unsound mind is also weak for rational judgment over the objective, understanding the terms and conditions of the contract, and judgment of consequence.
