Section12
The Indian Contract Act, 1872

What is a sound mind for the purposes of contracting

In force From 01 Sep 1872 Act 9 of 1872 As on 15 Oct 2026

Act 9 of 1872 Ministry Law and Justice Enacted 25 Apr 1872 In force 01 Sep 1872

Section 12 of the Indian Contract Act, 1872 deals with what is a sound mind for the purposes of contracting. A person is said to be of sound mind for the purpose of making a contract, if, at the time when he makes it, he is capable of understanding it and of forming a rational judgment as to its effect upon his interests. The Act came into force on 01 Sep 1872.

A person is said to be of sound mind for the purpose of making a contract, if, at the time when he makes it, he is capable of understanding it and of forming a rational judgment as to its effect upon his interests.

A person who is usually of unsound mind, but occasionally of sound mind, may make a contract when he is of sound mind.

A person who is usually of sound mind, but occasionally of unsound mind, may not make a contract when he is of unsound mind.

Illustrations

(a) A patient in a lunatic asylum, who is at intervals of sound mind, may contract during those intervals.

(b) A sane man, who is delirious from fever or who is so drunk that he cannot understand the terms of a contract, or form a rational judgment as to its effect on his interests, cannot contract whilst such delirium or drunkenness lasts.

Section 12, The Indian Contract Act, 1872 (Act 9 of 1872).

Questions about Section 12

What does Section 12 of the Indian Contract Act deal with?

Section 12 of the Indian Contract Act is headed "What is a sound mind for the purposes of contracting". A person is said to be of sound mind for the purpose of making a contract, if, at the time when he makes it, he is capable of understanding it and of forming a rational judgment as to its effect upon his interests.

How do I find court cases under Section 12 of the Indian Contract Act?

In judgments and charge sheets this section is written several ways, and each form finds a different set of orders. These search the full text of every order eCourtsIndia holds, best matches first: Contract Act 12, section 12 Contract Act, section 12 of the Indian Contract Act. Each opens the full list of orders on eCourtsIndia, where it can be narrowed by court, year and outcome.

When did Section 12 of the Indian Contract Act come into force?

Section 12 of the Indian Contract Act, cited as Contract Act 12, came into force on 01 Sep 1872, having been enacted on 25 Apr 1872. It is in force as at the date shown on this page.

Other sections of this Act

Source and method. Compiled from the enactments of Parliament and of the State legislatures as published on India Code, and republished together with commentary and other original matter under section 52(1)(q)(ii) of the Copyright Act, 1957. Structured, cross-referenced and maintained by eCourtsIndia. Text as in force on 15 Oct 2026. This page is not a substitute for legal advice.