Unsound Mind | Rules Regarding Person of Unsound Mind | Business Law

Sound Mind and Unsound 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.

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. 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.

According to Indian law “A person is said to be unsound mind for the purpose of making a contract if at the time
when he/she makes it is capable of understanding it and of forming a rational judgment as to its effect upon his/her interest.

Rules Regarding Person of 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. The test of the soundness of mind is on the capacity to understand the business concerned and the ability of rational judgment as to its effect on the person’s interest.