capacity to contract

Sayed Eqbal 12033

*According to section 11 of the INDIAN contract act:

“ Every person is competent to contract who is of the age of majority according to the law to which he is subject, & who is of sound mind, and is not disqualified from contracting by any law to which he is subject.”

*Minors, who are not of the age of majority.

*Persons of unsound mind, and

*Persons disqualified to contract by any law

*Who is a minor – Acc. To sec 3 of Indian majority act, 1875, a minor is a person who has not attained the age of 18 years.

*According to sec 12:“ A person is said to be of sound mind for the purpose of making a contract if, at the time when he makes it, he is capable of understanding it & of forming a rational judgment as to its effect upon his interest.”

*Idiots – has completely lost their mental powers

*Lunatic – the person losses the capacity due to the illness of brain or mental bodily distress.

*Drunkenness

*Alien enemy

*Insolvents- all property in hand of Official assignee. He can enter into contract when court passes an order of discharge

*Convicts – persons who are sentenced to imprisonment cannot enter into contract during that period).

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