In this CLAT preparation series, we publish detailed answers to old CLAT exam questions well supported with statutory provisions, supporting judgments and easy illustrations.
Legal Aptitude: The section contains 50 questions. Each question contains legal principles based on statutory enactments and facts related to the same. These propositions may not be the true ones. The student has to presume that it is true for reaching the conclusion to the given problem. Four answer choices are given in each question from which the student has to select the most appropriate and reasonable conclusion based on the given principle. The section is aimed to test one’s ability in legal aptitude, awareness of the law, research aptitude and problem-solving ability. It may be noted that the most reasonable conclusion may be absurd or unacceptable for any reason, yet the student must adhere to the principle given to arrive at the same in the question.
Question 117. Principle: A person, who is usually mad, but occasionally not mad, may make a contract when he is not mad.
Facts: A generally remains in the state of madness and rarely becomes capable of understanding anything.
(A) A can make a contract.
(B) A can never make a contract.
(C) A can make a contract at any time whenever he pleases.
(D) A can make a contract only for his own benefit.
This is a question from the Indian Contract Act, 1872 (in short “ICA”). According to Section 2(h) of ICA, an agreement enforceable by law is a contract. For forming a contract, there should be an agreement where one person signifies his willingness to do or to abstain from doing something with a view to obtaining the assent of that other to such act or abstinence and the said proposal is accepted by the other person. Hence, there should be a willingness on the part of either party which means that they should have a free mind capable of thinking to involve in the process of forming a contract.
The above point is made more clear by Section 10 of the ICA which specifies what agreements are contracts. As per this Section, all agreements are contracts if made by the free consent of parties competent to contract. Though there is one more element, we are concerned more with the part of competency to contract. The very next Section (11) specifies the persons who are competent to contract. This is the most important part which we are concerned about. As per this Section, every person who is of sound mind is competent to contract.
What is a sound mind? The answer is given in the very next Section (12) of ICA. If a person is capable of understanding the contract and of forming a rational judgment as to its effect upon his interest, then he is said to be one of sound mind. The section requires that at the time of making the contract, he should be of sound mind. Further, the section goes on saying that a person who is usually of unsound mind, but occasionally of sound mind, may make a contract when he is of sound mind.
Illustration: A is usually of unsound mind and is under treatment for the same in the asylum. He occasionally comes to sound mind. He can enter into an agreement with anyone during this time when he is sound.
In Amina Bibi vs. Saiyid Yusuf AIR 1922 All 449 (D) the Allahabad High Court held a lease void due to the fact that the person was not in a position to understand or to determine rationally whether it was likely to operate to his benefit by reason of his mental condition.
It would be much easier to choose your answer now.
Answer choice A: A can make a contract.
The principle given in the question is purely the essence of Section 12 of ICA. As per the fact, A is mad, but rarely he comes out of his madness. Thus, we can follow the law and easily choose that he can make a contract during the time when he is sound. So A can make a contract means making a contract when he is sound. Hence Answer Choice A is the correct one.
Answer Choice B: A can never make a contract.
Since it is made clear in the fact that A, though rarely, comes out of his madness, he can make a contract. So this option is incorrect.
Answer Choice C: A can make a contract at any time whenever he pleases.
This choice is a tricky one. The term “whenever he pleases” may lead us to choose this option. Please keep in mind that you have to select the most appropriate and reasonable conclusion based on the given principle. The willingness of a mad person is devoid of any reasoning. A mad person is willing to do many things in the state of madness. In other words, he can do whatever he wishes to do whenever he pleases. So selecting this answer is neither appropriate nor a reasonable choice.
Answer Choice D: A can make a contract only for his own benefit.
A can definitely make a contract. Whether the contract is for the sole benefit of A or other persons is not the question to be considered at this point. Hence the reasonable choice would be that A can make a contract. So. this option is incorrect.
In Indar Singh and others vs Parameshwardhari Singh and another [AIR 1957 PAt 491, 1957 (5) BLJR 238], the Patna High Court dealt with the issue of unsoundness of mind while dealing with the authenticity of a sale deed.
In this case, the defendant contracted to sell the properties to the plaintiffs by executing a sale deed. But in the registrar’s office, the defendant denied execution of the sale deed. Later, when a suit was filed by the plaintiffs, Defendant No:2 being the mother of Defendant No:1 alleged that her son is an idiot from birth and is incapable of understanding transactions relating to the transfer of properties. He is a man of unsound mind. The burden of proving the unsoundness was on the part of the defendants.
The Court held that the party contracting must have the capacity to arrive at a reasoned judgment as to the consequences of the contract he is entering into. It does not necessarily, mean that a man must be suffering from lunacy to disable him from entering into a contract. A person may to all appearances, behave in a normal fashion, but, at the same time, he may be incapable of forming a judgment of his own, as to whether the act he is about to do is to his interest or not, and to the contracts of such a person the law gives protection.
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