AILET 2015 Question Paper with answer key for online practice

Question : 79 of 150

Marks: +1, -0

LEGAL PRINCIPLE: 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.
FACTUAL SITUATION :Mr. X who is usually of sound state of mind, but occasionally of unsound state of mind, enters into a contract with Mr. Y when he was of unsound state of mind. Mr. Y having come to know about this fact afterwards, wants to file a suit against Mr. X.
DECISION:

Mr. X cannot enter into contract because he is of unsound state of mind when he entered into contract.
Mr. X can enter into contract but the burden is on the other party to prove that he was of unsound state of mind at the time of contract.
Mr. X can enter into contract but the burden is on Mr. X to prove that he was of sound state of mind at the time of contract.
Contract with a person of unsound mind is void.

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