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    C 11, 12 Capacity To Contract

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    Prabha Doraiswamy
    The document discusses the competence of parties to enter into a valid contract under Indian law. It defines who is considered competent to contract according to Section 11 of the Contract Act, including those who are of age of majority, of sound mind, and not otherwise disqualified. Those not competent to contract include minors under 18 years old, persons of unsound mind, and those disqualified by other laws. An agreement with a minor or person of unsound mind would be void or voidable.

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    C 11, 12 Capacity To Contract

    Uploaded by

    Prabha Doraiswamy
    46 views21 pages
    The document discusses the competence of parties to enter into a valid contract under Indian law. It defines who is considered competent to contract according to Section 11 of the Contract Act, including those who are of age of majority, of sound mind, and not otherwise disqualified. Those not competent to contract include minors under 18 years old, persons of unsound mind, and those disqualified by other laws. An agreement with a minor or person of unsound mind would be void or voidable.

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    The document discusses the competence of parties to enter into a valid contract under Indian law. It defines who is considered competent to contract according to Section 11 of the Contract Act, including those who are of age of majority, of sound mind, and not otherwise disqualified. Those not competent to contract include minors under 18 years old, persons of unsound mind, and those disqualified by other laws. An agreement with a minor or person of unsound mind would be void or voidable.

    Copyright:

    © All Rights Reserved
    Download as PPT, PDF, TXT or read online from Scribd
    Download as ppt, pdf, or txt
    46 views21 pages

    C 11, 12 Capacity To Contract

    Uploaded by

    Prabha Doraiswamy
    The document discusses the competence of parties to enter into a valid contract under Indian law. It defines who is considered competent to contract according to Section 11 of the Contract Act, including those who are of age of majority, of sound mind, and not otherwise disqualified. Those not competent to contract include minors under 18 years old, persons of unsound mind, and those disqualified by other laws. An agreement with a minor or person of unsound mind would be void or voidable.

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    © All Rights Reserved
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    of 21

    Competence(i.e.

    , capability) of the parties to enter


    into a valid contract.

    Sec. 11 of the Contract Act


    “Every person is competent to contract who is of
    the age of majority according to the law to which
    he is subject, and who is of a sound mind, and is
    not disqualified from contracting by any law to
    which he is subject”.
    (i) Minors;
    (ii) Persons of unsound mind; and
    (iii) Persons disqualified for
    contracting by any other law.
    According to Section 3 of the Indian
    Majority Act, 1875, a person who has not
    completed his age of 18 years (majority), is
    considered to be a minor. In the following two
    cases, a person becomes major on completing
    the age of 21 years:
    a)Where a guardian of a minor’s person or
    property has been appointed under the Guardians
    and Wards Act, 1890; and
    b) Where the superintendence of minor’s
    property is assumed by a Court of Wards.
    1. An agreement with or by a minor is void ab initio
    2. A minor can be a promisee or a beneficiary
    3. No ratification
    4. No restitution
    5. The liability of Minor’s parents or guardian
    6. No Estoppel
    7. Minor’s property liable for necessaries
    8. Minor’s liability for tort
    9. Minor as an agent
    10. Minor as a partner
    11. Minor as an insolvent
    Which of the following persons is not
    competent to contract?

    (a) Persons of Indian origin


    (b) Persons of sound mind
    (c) Persons of unsound Mind
    (d) None of these
    Which of the following persons is not
    competent to contract?

    (a) Persons of Indian origin


    (b) Persons of sound mind
    (c) Persons of unsound Mind
    (d) None of these
    A convict when undergoing imprisonment is

    (a) Capable of entering into a contract


    (b) Not capable of entering into a contract
    (c) Depends the nature of case
    (d) None of these
    A convict when undergoing imprisonment is

    (a) Capable of entering into a contract


    (b) Not capable of entering into a contract
    (c) Depends the nature of case
    (d) None of these
    An agreement with a person of
    unsound mind is -----------

    (a) Absolutely void


    (b) Voidable
    (c) Valid
    (d) None of these
    An agreement with a person of
    unsound mind is -----------

    (a) Absolutely void


    (b) Voidable
    (c) Valid
    (d) None of these
    Section 12 of the Indian Contract Act,
    “A person is said to be sound mind for the
    purpose of making a contract if at the time when
    he makes it, he is capable of understanding it,
    and of forming a rational judgement as to its
    effects upon his interests”.

    1. Idiot:
    2. Lunatics
    3. Drunken or intoxicated person
    1. Alien enemy
    2. Insolvent
    3. Foreign Sovereigns, their Diplomatic Staff
    and Accredited representatives of
    Foreign States
    4. Joint Stock Company and Corporations
    incorporated under Special Acts
    5. Felons or Convicts
    A person whose mental powers are
    completely absent are known as ---------

    (a) Idiot
    (b) Insolvent
    (c) Lunatic
    (d) Minor
    A person whose mental powers are
    completely absent are known as ---------

    (a) Idiot
    (b) Insolvent
    (c) Lunatic
    (d) Minor
    A minor is a person below the age of -----

    (a) 15 years
    (b) 18 Years
    (c) 21 years
    (d) 30 years
    A minor is a person below the age of -----

    (a) 15 years
    (b) 18 Years
    (c) 21 years
    (d) 30 years

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