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Under Section 12, a person is of 'sound mind' for contracting if, at the time of making the contract, he is capable of:
AUnderstanding it and forming a rational judgement as to its effect on his interests
BBearing the financial burden of the contract
CReading and writing the contract
DPerforming it personally
Answer & Solution
Correct answer: A. Understanding it and forming a rational judgement as to its effect on his interests
Section 12 defines soundness of mind in terms of capacity to understand the contract and form a rational judgement about its effect on one's interests at the time of contracting.
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