question_answer

Direction: The question consists of two statements, one labelled as PRINCIPLE and other as FACT. You are to examine the principle and apply it to the given facts carefully and select the best option.

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 mind, but occasionally of unsound mind enters into a contract with Mr. Y when he is of unsound mind. Y came to know about this fact afterwards and now wants to file a suit against Mr. X.

A) Mr. X cannot enter into contract because he is of unsound 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 mind at the time of contract.

C) Mr. X can enter into a contract but the burden is on Mr. X to prove that he was of unsound mind at the time of contract.

D) None of the above.