Question

Principle : A person, who is usually of unsound mind, but occasionally normal, may make a contract when he is not of unsound mind.
Facts : 'A' generally remains in the state of unsound mind and rarely becomes capable of understanding the things.

• A. 'A' can make contract at any time whenever he pleases.
• B. 'A' can make contract only for his own benefit.
• C. 'A' can make contract when normal.
• D. 'A' can never make a contract.

Answer 1

The correct option is C 'A' can make contract when normal.

According to the Section $12$ of the Indian Contract Act defines that if 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 its effect upon his interest.
A person who is usually of unsound but occasionally of sound mind may make contract when he is sound mind. Reasonable conclusion drawn in the above noted problem, A can make the contract when normal.