Agreement Made by a Person of Unsound Mind: What You Need to Know

An agreement is a legally binding contract entered into by two or more parties, with each party agreeing to fulfill certain obligations outlined in the contract. However, when one of the parties is of unsound mind, it can affect the legality of the agreement. In this article, we will discuss what you need to know about an agreement made by a person of unsound mind.

What is Unsound Mind?

Before we dive into the specifics of an agreement made by a person of unsound mind, we first need to understand what unsound mind means. A person of unsound mind is someone who is not capable of understanding the consequences of their actions due to mental illness, disability, or intoxication.

The Definition of Agreement

Under the Indian Contract Act, an agreement is defined as “every promise and every set of promises, forming the consideration for each other.” This means that both parties need to understand the terms of the agreement and have the capacity to enter into the agreement.

Agreement Made by a Person of Unsound Mind

Under the Indian Contract Act, an agreement made by a person of unsound mind is voidable. This means that the agreement is not automatically void, but it can be challenged by the other party if they can prove that the person of unsound mind did not understand the terms of the agreement.

To challenge an agreement made by a person of unsound mind, the other party needs to prove that the person of unsound mind did not understand the nature and consequences of the agreement or that they were unable to control their actions. They can do this by providing evidence of the person`s mental state at the time the agreement was made.

Protecting the Interests of Persons of Unsound Mind

The Indian Contract Act also includes provisions to protect the interests of persons of unsound mind. For example, if a person of unsound mind has entered into an agreement, and the other party is aware of their mental state, the other party is not entitled to take advantage of the situation.

Additionally, if the person of unsound mind is not capable of managing their own affairs, a guardian may be appointed to act on their behalf. In this case, any agreement entered into by the guardian on behalf of the person of unsound mind would be legally binding.

Conclusion

In conclusion, an agreement made by a person of unsound mind is voidable. The other party can challenge the agreement if they can prove that the person of unsound mind did not understand the terms of the agreement. However, there are provisions in the Indian Contract Act to protect the interests of persons of unsound mind. It is essential to understand the legal implications of agreements made by persons of unsound mind to protect both parties` interests.