Those who can’t understand the content of the contract and can’t make the rational judgment for their interest.
Since contract is private law made by the parties to the contract by them for themselves, the clear understanding and rational judgment should be there.
Thus law of contract treat person of unsound mind as a disqualified person to make a contract or in other word they don’t have contractual capacity.
Rules regarding person of unsound mind’s agreement
- Generally Contract with person of unsound mind is void ab initio in Nepal. But in UK it is voidable contract. The person of unsound mind may accept the contract or declare void by the court of law.
- A person who is usually of sound mind but occasaionally of unsound mind may make a contract when he is of sound mind.
- A person who is of usually of unsound mind but occasionally of sound mind may make a contract when he is of sound mind
- The contract did for the benefit of person of unsound mind by the parent or guardian it s valid.
- Necessaries supplied to the person of unsound mind create the implied contract and it is also a valid contract.
Other Disqualified person to make a contract
- Foreign Diplomats
- Alien enemy
- Corporation
- Married Women
- Insolvent
- Professional person
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