Contracts Act 1950 · Updated to 1 Jan 2006 · Part III · Of Contracts, Voidable Contracts and Void Agreements
12. What is a sound mind for the purposes of contracting
Feedback & supportA 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.
A patient in a mental hospital, who is at intervals of sound mind, may contract during those intervals.
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.