Contract by a Person of Unsound Mind

Understanding the legal capacity to enter into a contract is crucial. A person is generally considered capable of making a contract if they are of the age of majority and of sound mind. However, the question talks about Preeti, who is usually of unsound mind but occasionally of sound mind.

Indian contract law (Section 12 of The Indian Contract Act, 1872) defines what constitutes a sound mind for the purpose of making a contract. It states that a person is 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.

The section also specifically addresses persons who are occasionally of unsound mind:

• 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.

Applying this principle to Preeti's situation:

• Preeti is usually of unsound mind.
• However, she is occasionally of sound mind.

Based on the legal definition, she has the capacity to contract, but only during the periods when she is of sound mind and capable of understanding the contract and its implications.

Therefore, Preeti can make a valid contract during those intervals when her mind is sound.