What is a sound mind for the purposes of contracting? Section 12 of Indian Contract Act
1872
12. 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.
A person who is usually of unsound mind, but
occasionally of sound mind, may make a contract when
he is of sound mind.
A person who is usually of sound mind, but occasionally of unsound mind, may not make a contract when he is of unsound mind.
Illustrations
(a) A patient in a lunatic asylum, who is at intervals of sound
mind, may contract during those intervals.
(b) A sane man, who is delirious from fever or who is so drunk that he cannot understand the terms of a contract or form a rational judgment as to its effect on his interests, cannot contract whilst such delirium or drunkenness lasts.
Section 2 - Interpretation clause
CHAPTER I THE COMMUNICATION, ACCEPTANCE AND REVOCATION OF PROPOSALS
Section 3 - Communication, acceptance and revocation of proposals
Section 4 - Communication when complete
Section 5 - Revocation of proposals and acceptances
Section 6 - Revocation how made
Section 7 - Acceptance must be absolute
Section 8 - Acceptance by performing conditions, or receiving consideration
Section 9 - Promises, express and implied
CHAPTER II CONTRACTS, VOIDABLE CONTRACTS AND VOID AGREEMENTS
Section 10 - What agreements are contracts
Section 11 - Who are competent to contract
Section 12 - What is a sound mind for the purposes of contracting
Section 14 - Free consent defined
Section 16 - Undue influence defined
Section 18 - Misrepresentation defined
Section 19 - Voidability of agreements without free consent
Section 19A - Power to set aside contract induced by undue influence
Section 20 - Agreement void where both parties are under mistake as to matter of fact
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