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Capacity Of Parties To Enter In To Contract


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Capacity Of Parties To Enter In To Contract

  1. 1. Capacity of Parties [ 11 ] <ul><li>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 sound mind and is not disqualified from contracting by any law to which they are subject. </li></ul><ul><li>Attainment of Majority . </li></ul><ul><li>Persons of Sound mind. </li></ul><ul><li>Persons disqualified by any law to which they are subject to. </li></ul>
  2. 2. Capacity of Parties [ 11 ] <ul><li>Majority </li></ul><ul><li>       Under the Indian Majority Act, 1875 – 18 years. </li></ul><ul><li>       Guardians and Wards Act, 1890 – 21 years. </li></ul><ul><li>Persons of Unsound Mind. </li></ul><ul><li> </li></ul><ul><li> Idiocity. </li></ul><ul><li>       Insanity. </li></ul><ul><li>       Drunkenness. </li></ul><ul><li>       Mental decay. </li></ul><ul><li>       Hypnotism. </li></ul><ul><li>Persons disqualified by law to which he is subject. </li></ul><ul><li> </li></ul><ul><li>       Alien enemies. </li></ul><ul><li>       Foreign Sovereigns and ambassadors. </li></ul><ul><li>       Insolvents. </li></ul><ul><li>       Convict. </li></ul>
  3. 3. Effects of Minors agreement <ul><li>Agreement void ab intio. </li></ul><ul><li>No ratification. </li></ul><ul><li>Minor can be beneficiary. </li></ul><ul><li>No estopeel against a minor. </li></ul><ul><li>No specific performance </li></ul><ul><li>Liable for act of Torts. </li></ul><ul><li>No insolvency. </li></ul><ul><li>Admission for the benefit of Partnership firm. </li></ul><ul><li>Minor can be an agent but not liable for acts done. </li></ul>
  4. 4. Effects of Minors agreement <ul><li>Liability for necessaries. </li></ul><ul><li>Minor as Shareholder. </li></ul><ul><li>Surety for a Minor. </li></ul>
  5. 5. Persons of Unsound Mind [ 12 ] <ul><li>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 and forming a rational judgement as to its effect upon his interests. </li></ul><ul><li>Capable of understanding . </li></ul><ul><li>Forming a rational judgement. </li></ul>
  6. 6. Persons of Unsound mind <ul><li>Unsoundness of mind : </li></ul><ul><li>Idiocy. </li></ul><ul><li>Lunacy or insanity. </li></ul><ul><li>Drunkenness. </li></ul><ul><li>Hypnotism. </li></ul><ul><li>Mental Decay. </li></ul>
  7. 7. PERSONS DISQUALIFIED FROM CONTRACTING BY ANY OTHER LAW. <ul><li>Alien enemies. </li></ul><ul><li>Foreign Sovereigns and ambassadors. </li></ul><ul><li>Insolvents. </li></ul><ul><li>Convict </li></ul>
  8. 8. Free Consent <ul><li>When it is not caused by: </li></ul><ul><li>Coercion. </li></ul><ul><li>Undue influence. </li></ul><ul><li>Fraud. </li></ul><ul><li>Mis-representation. </li></ul><ul><li>Mistake. </li></ul>
  9. 9. Lawful Object. <ul><li>Not forbidden by Law. </li></ul><ul><li>Would not defeat the very purpose of Law. </li></ul><ul><li>Not a fraud. </li></ul><ul><li>It would not cause any injury to the person or property of another. </li></ul><ul><li>It is not immoral or opposed to public policy. </li></ul>