question_answer

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. Facts 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.

A)  Mr X cannot enter into contract, because he is of unsound state of mind when he entered into contract

B)  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

C)  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

D)  None of the above