Consider the following statements:<br>A person is said to be of sound mind for the purpose of making a contract if at the time of making it he is:<br>1. of the age of majority.<br>2. capable of understanding the contract though unable to form a rational judgment as to its effect upon his interest.<br>3. capable of understanding it and of forming a rational judgement as to its effect upon his interest.<br>Which of the statements given above is/are correct?

Correct Answer: 3 only