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G Krishna (PM)     05 January 2016

Registration by mentally challenged person

My brother is mentally challenged person and government doctors certified the same. Recently he has executed a sale of his property and those guys cheated him by paying partial amount. Is the registration by mentally challenged person valid? Please advise.

 2 Replies

Dr Katta Venkata Rama Krishna (Retd Sr Director Govt of India/ Advocate)     17 January 2016


1) Mental incompetence as it applies to the law of contract is only in effect if the individual in question has been declared mentally incompetent by a court of law, and that the incompetence has been declared so severe as to require the individual be assigned a guardian.




2) The guardian is the only person who can enter into a contract on the incompetent person's behalf. If a person who has been adjudicated to be mentally incompetent attempts to enter into a contract on their own part, the contract will be declared void.




3) A contract entered into by a person that has been found to be mentally incompetent may be determined under business contract law to be voidable if the individual formed the contract before they were judged to be suffering from some form of mental incompetence.




5) The law of contract may rule that a contract involving a person suffering from a deficit of mental competency is voidable if the individual was not aware of the fact that they were entering into a contract, or if they were incapable of comprehending the contract's nature, consequence, or purpose. The possibility to avoid the contract lies with the party that is does not have full control of their mental capacities.



Section 12 of the Indian Contract Act deals with capacity.


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.

S.SUNDARAM (Advocate / Lawyer)     14 April 2016

An unsound mind person cannot enter into contract. If any contract is entered into, it is not valid in the eye of law.

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