Multiple choice

Principle: A person is said to be of sound mind for the purpose of making a contract if at the time he makes it, he is capable of understanding it, and of forming a rational judgment as to its effect upon his interests. Which of the conditions given below makes for a valid contract?

  1. A person suffering from minor interludes of insanity signs a contract during one such period.

  2. An idiot agrees to marry another idiot’s daughter.

  3. A person after taking drugs with liquor feels euphoric and signs off all his pending project contracts.

  4. A lunatic agrees to buy raw material for his new business in a period of sanity.
Reveal answer Fill a bubble to check yourself
D Correct answer
Explanation

Option 1: Contract made during a period of insanity is not valid.

Option 2: An idiot is one who doesn’t understand things in the same perspective or manner as a normal person does. Hence, it is not a valid contract.

Option 3: Contracting in a state of induced euphoria is liable to affect one’s judgment; hence, it is not valid.

Option 4: If a lunatic who has occasional periods of sanity makes a contract during one such period, then this contract is valid.

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