Contrcat Act 1872 - Person of unsound mind

by Asok Nadhani

4.3 Person of unsound mind (sec. 12)

i.      Not in sound mind : A Person is said to be unsound mind for the purpose of making an agreement, if at the time of making the agreement, he is not in sound mind.

ii.    Soundness of mind means that:

a.     Understand : He is in a state to understand what he is doing,

b.    Rational judgment : He is able to form a rational judgment about the effect of his acts to his interest.

4.3.1 Types of Person of unsound mind

The following types of persons are said to be of unsound mind:

  i.    Lunatics: A person who is mentally deranged. Such person can make a contract when he is mentally stable.

Ex. A patient in a lunatic asylum who is at intervals of sound mind, may contract during those intervals.

ii.    Idiots: A person who has completely lost his mental powers. Idiocy is permanent where as Lunacy is temporary. An agreement by an Idiot is void.

iii.    Drunken or Intoxicated persons: A person so drunk or intoxicated that he is not capable of forming a rational judgment during the period of intoxication or drunkenness. Like a Lunatic, a drunken person can make a contract when his condition is stable.

Ex. K a sane man was drunk and cannot understand the terms of the contract entered by him with L. K cannot perform the contract while such drunkenness lasts.

4.3.2 Agreement with Person of unsound mind

i.      Contracts made by persons of unsound mind : Contracts made by persons of unsound mind, at the time when they are unsound, are void, but contracts made during the time when he is of sound mind, are valid.

ii.    Estate liable for necessary supplies : Though the contracts of person of unsound mind is void, their estate is liable for necessary supplies made to support them.

Ex. A supplies some articles of food to B, the wife of C who is a lunatic. C has assets worth Rs. 5,000. On non-payment, A can recover from the assets of C for the 

For more details, refer to Mercantile Law, by Asok Nadhani, BPB Publications, www.bpbonline.com, bpbpublications@gmail.com