Q.

Under the Contract Act, 1872 a person is said to be of sound mind for the purpose of making a contract if:

A. he is not illiterate and can read and understand the terms of the contract.
B. he is capable of understanding the contract and forming a rational judgement as to its effect upon his interests.
C. he is of the age of majority and is not disqualified from contracting by any law to which he is subject.
D. he is not suffering from any mental disease or distress.
Answer» B. he is capable of understanding the contract and forming a rational judgement as to its effect upon his interests.
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