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CAPACITY

Imperial Loan Co Ltd v. Stone [1892] 1 QB 599

ISSUE:

Can the defendant successfully claim the defense of insanity?

RULE:

A defendant who seeks to avoid a contract on the ground of his insanity, must prove, not merely his incapacity, but also the plaintiffs' knowledge of that fact about the insanity and if he fails to do so, he cannot avail the defense.

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