Q.A person who suffers from periodic bouts of unsoundness of mind, with intervening lucid periods, enters into an agreement during one such lucid period. Under Section 12, this agreement is:
(A) Always void, regardless of when it was made, because the person is generally of unsound mind
(B) Capable of being a valid contract, since Section 12 tests soundness of mind AT THE TIME the contract is made
(C) Voidable at the option of the other party only
(D) Valid only if a doctor certifies the lucid interval in writing

Section 12's test is applied at the exact moment of contracting, not to the person's general/usual mental condition.

Section 12 expressly contemplates that a person who is usually of unsound mind, but occasionally of sound mind, MAY contract when he is, in fact, of sound mind — the reverse of a person usually sound but occasionally unsound, who may NOT contract during an unsound episode.

Option-by-option analysis:

• (A) Incorrect — this ignores Section 12's 'at the time' test; a lucid-interval agreement can be perfectly valid.
• (B) Correct — this is exactly the rule Section 12 states for a person with periodic lucid intervals. …