Person of Unsound Mind  : Meaning, Requirements and Burden of Proof

     Section Reference :12  of Indian Contract Act 1872                                                              

Meaning of sound mind A person is said to be of sound mind if he is able to
• understand the contract, and
• Form a rational judgment
Presumption The law presumes that every person is of sound mind
Requirements of law At the time of entering into a contract, a person must be of sound mind. A person can enter into a contract in accordance with the following principles:
  Nature of person When can he enter into a contract?
A person of sound mind • He can enter into a contract at all the times.
• He cannot enter into a contract when he is of unsound mind.
A person of unsound mind He can enter into a contract only at such intervals of time, if any, when he is of sound mind
Burden of proof Case Burden of proving otherwise
A person who is usually of sound mind The burden of proving that he was of unsound mind at the time of entering into the contract lies on the person who challenges the validity of the contract.
A person who is usually of unsound mind. The burden of proving that he was of sound mind at the time of entering into the contract lies on the person who affirms the contract
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