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Contractual Capacity of Persons of Unsound Mind
Furthermore a contract entered into through a person of unsound mind is voidable on his option whether it is proved that the other party was aware for his mental condition: as Imperial Loan Co. Ltd. v. Stone, whereas Lopes, L. J. stated that "a contract made through a person of unsound mind in not voidable on that person's option whether the other party to the contract believed on the equivalent time he made the contract that the person with whom that he was dealing was about sound mind". Hence the following points should also be notice as;
Ratification
Moreover a contract entered into through a person whereas he is insane can be ratified with him whether he becomes of sound mind.
Necessaries
Conversely a person of unsound mind, like a drunken person then is liable for pay to necessaries supplied for him. On the other hand he is only liable to pay reasonable prices to the necessaries under their S. 4 of the Sale with Goods Act.
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