VoxJuris
Home › Acts › Indian Contract Act, 1872 › Chapter II › Section 12

Indian Contract Act, 1872 · Chapter II: Of Contracts, Voidable Contracts and Void Agreements

Section 12: What is a sound mind for the purposes of contracting

In plain words

A person is of sound mind for contracting if, when making the contract, they can understand it and form a rational judgment about its effect on their interests.

  • A person usually of unsound mind can contract during periods when they are of sound mind.
  • A person usually of sound mind cannot contract while they are of unsound mind, for example while delirious from fever or too drunk to understand the terms.

A simplified explanation, prepared with AI assistance from the official text below and checked automatically against it for numbers and cross-references. The official text is the law and prevails over this summary. Not legal advice.

Official text

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.

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, may not make a contract when he is of unsound mind.

Illustrations

(a) A patient in a lunatic asylum, who is at intervals of sound mind, may contract during those intervals.

(b) A sane man, who is delirious from fever or who is so drunk that he cannot understand the terms of a contract, or form a rational judgment as to its effect on his interests, cannot contract whilst such delirium or drunkenness lasts.

Source: India Code (indiacode.gov.in), the consolidated text published by the Legislative Department, Government of India. Text as updated on India Code on 15 October 2026. Words in square brackets [ ] were inserted or substituted by later amending Acts, and *** marks words omitted by an amendment. The amendment footnotes are not reproduced here. Official text on India Code.

Supreme Court judgments citing the section 12