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Similar to capacity to Contract (20)
capacity to Contract
- 1. CAPACITY TO CONTRACT MICHEAL SOLOMON L
- 2. Meaning ๏The โCapacity to Contractโ means the COMPETENCE or CAPABILITY of the parties to enter into a VALID CONTRACT. ๏Thus , an AGREEMENT is valid and ENFORCEABLE only if the parties to the contract are QUALIFIED or COMPETENT to enter into a CONTRACT.
- 3. Definition According to Sec. 11 of the Indian Contract Act, โEvery PERSON is Competent to Contract who is of the age of the MAJORITY according to the law to which he is subject , and who is of SOUND MIND, and is NOT DISQUALIFIED from contracting by any law to which he is subject.โ
- 4. Persons who are Competent to Contract ๏ถ A MAJOR ๏ถPERSONS OF SOUND MIND ๏ถPERSONS Not Dis Qualified from Contracting by LAW
- 5. Persons not Competent to Contract ๏ฑ MINORS ๏ฑ PERSONS OF UNSOUND MIND ๏ฑPERSONS DISQUALIFED BY LAW
- 6. Effects of Minorโs Agreement o An agreement by or with a minor is VOID AB INITIO. oNo estoppel against minor oNo ratification oBeneficial contract oDoctrine of Restitution and Minor oTort and minor oMinors as a partner of partnership oMinor as an AGENT oMinor as an INSOLVENT oMinor and Negotiable Instruments oLiability of parents/ guardian of a minor oMinorโs liability for necessaries
- 7. Person of Unsound Mind ๏ง IDIOT ๏งLUNATICS ๏งDRUNKEN or INTOXICATED PERSONS
- 8. Persons disqualified by law ๏ถ ALIEN ENEMIES ๏ถFOREIGN SOVEREIGN, AMBASSADORS, DIPLOMATIC STAFF ๏ถINSOLVENTS ๏ถCONVICTS ๏ถCORORATIONS and COMPANIES