Q5 2.

As per the Indian contract act, under capacity to contract every person who has attained the age of
majority and is of sound mind is eligible to make a contract , otherwise is disqualified from making a
contract .

A person is said to be of sound mind when the person is able to understand and take rational
decision in respect to his decision. A person who is usually of unsound mind but is occasionally of
sound mind is allowed to make contract when the person is of sound mind and not when he is of
unsound mind. It is upto the plaintiff to prove whether the contract was made when both the parties
were of sound mind or not.

In this case X is of unsound mind but is occasionally of sound mind makes a contract with Y at time of
his sound mind however Y refuses to fulfil his part of the contract and blames X of insanity . X sues Y
for breach of contract.

Hence X will succeed in this case against Y on the grounds that he has to prove that he was of sound
mind whilst making the contract.

Q5 4

As per the Indian contract act , quasi contract are contract now derived from agreement but is
imposed by law for equity justice and good conscience , it is a right not against the world but against
particular person or persons. Under Section-72 of the Indian contract act a type of quasi contract is
discussed which states that liability for money paid or thing delivered by mistake or coercion must
be repaid or returned .

In this case A delivers / paid money to B by mistake believing him to be C. Therefore A demands the
money returned to him.

Hence, A has the right to obtain money from B , as the payment of money was influenced by a
mistake ,B has to repay A or have to return him the favour in any other means as per SECTION71
under contract act or else SEC.-72 follows and the mistake has to be undone.