Section 12 The Indian Contract Act, 1872
Here is a detailed explanation of:
Section 12 – The Indian Contract Act, 1872
🔹 Title:
"What is a sound mind for the purposes of contracting."
🔍 Bare Act Language:
“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 interest.
A person who is usually of unsound mind, but occasionally of sound mind, may make a contract when he is of sound mind.
A person who is usually of sound mind, but occasionally of unsound mind, cannot make a contract when he is of unsound mind.”
✅ Explanation:
Section 12 defines who is mentally competent to enter into a valid contract.
A valid contract requires that both parties have the capacity to contract, and soundness of mind is a key element.
📌 Key Points:
✅ A person must:
Understand the contract at the time of entering into it.
Be able to judge its impact on his or her own interests.
🔁 Persons with fluctuating mental conditions:
If someone is normally unsound, they can contract only when they are temporarily sound.
If someone is normally sound, they cannot contract during a temporary phase of unsoundness (e.g., due to illness, intoxication).
⚖️ Case Law Example:
Inder Singh v. Parmeshwardhari Singh, AIR 1957 Pat 491
The court held that a person suffering from mental illness could enter into a contract only when proven to be of sound mind at the time of agreement.
🧠 Common Examples of Unsound Mind:
Mental illness (like schizophrenia)
Intoxication (drunk/high)
Temporary insanity due to trauma or medication
RELATED Blog
0 comments