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Sounded out breaking contract, being of unsound mind (8)

Ross

I believe the answer is:

deranged

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This clue could be a double definition.

'sounded out breaking contract' is the first definition.
Although both the answer and definition are past participle verbs, I cannot understand how they can define each other.

'of unsound mind' is the second definition.
(thesaurus)

'being' is the link.

Can you help me to learn more?

(Other definitions for deranged that I've seen before include "What Ophelia was eventually" , "totally without reason" , "Gardened, being quite mad" , "Upset" , "irrational" .)

I've seen this clue in The Telegraph.
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