PERSON OF UNSOUND MIND

As explained earlier, as per Section 11 of contract Act, for a valid contract each party to the contract must have a sound mind. Contract made by person of unsound mind are void. The reason is that a contract requires assents of two minds but a person of unsound mind has nothing which the law recognize as a mind.

Section 12 deals with the question as to what is a sound mind for the purpose of entering into contract. It lays down that, "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 judgement as to its effects upon his interest."

Unsoundness of mind may arise from:(a) Idiocy. An Idiot is a person with no intervals of saneness. He is in capable. His mental powers of understanding even ordinary matters are absent because of lack of development of brain. The agreement with an idiot is void.  (b) Lunacy or Insanity. It is disease of brain. A lunatic loses the use of his reason due to some mental strain or disease. He may have Lucid Intervals of sanity. He can enter into contract during that period when he is of sound mind.

(c) Drunkenness. It produces temporary incapability till the man is under the effect of intoxication creating impotence of mind. He stands on the same footing as a lunatic.

(d) Hypnotism. It also produce temporary incapability till the person is under the impact of artificially induced sleep.

(e) Mental decay. It is on account of old age etc.

So, an agreement with person of unsound mind is void. But under Section 68, the property of such person is always liable for necessaries supplied to him or to anyone whom he is legally bound to support.