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Apply the stated principle to the facts. Principle: The test of soundness of mind for contracting is…

Sections 11 and 12 of the Indian Contract Act, 1872 make capacity at the time of agreement decisive. A person who usually lacks capacity can contract during an interval in…

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Apply the stated principle to the facts.
Principle: The test of soundness of mind for contracting is whether the person can understand the contract and form a rational judgment about its effect on their interests when making it. A person who usually lacks this capacity can contract during an interval when they have it.
Facts: In a suit to enforce an agreement between Yadav and Hari, it has been established that Yadav usually lacked this capacity around the time of the agreement. Hari argues that Yadav had capacity when he made the agreement.
Who must establish capacity or incapacity at that time?

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Answer and explanation

Correct answer B

Sections 11 and 12 of the Indian Contract Act, 1872 make capacity at the time of agreement decisive. A person who usually lacks capacity can contract during an interval in which they meet the statutory test. Here Yadav's usual incapacity around the relevant time is already proved. Hari, who relies on the agreement and asserts that exception, must prove Yadav could understand the agreement and form a rational judgment about its effect on his interests at the time.

Option feedback

Option A

Yadav's usual incapacity is already established. The party asserting an interval of capacity must establish it.

Option B

Hari seeks enforcement on the basis of an interval of capacity. He must prove that Yadav met the statutory test at the time.

Option C

The disputed fact is Yadav's capacity when he made the agreement. Hari relies on an interval of capacity.

Option D

Hari must prove the interval of capacity on which he relies.

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