what is considered as competant , for your contract to be valid

1. Competency of
partles
IVIN GEORGE

2. Introduction
The competency of parties to enter into a contract is one of
the most basic parts of a legal contract. ‘Sec 11 of the Indian
Contract Act 1872′ states an individual’s ability to engage in a
contract to be reliant on three factors; to reach the age of
majority, to be sound-minded and not to be disqualified by any
laws related to that contract. In this essay, we will examine all
these topics in-depth.

3. Sec 11
By section 11, “A person must have the authority to enter
into contracts with a majority age in accordance with his
law, having a sound mind and not being barred from
contracts under any legislation to which he is subject.”

4. Since any individual under the age of 18 is not able to form a contract,
any agreement reached with a child is invalid (from the beginning) “void-
ab-initio

5. Case law
Mohoribibi vs. Dharmodas Ghose 30 IA 114: 30Cal 539 (1903)
A kid mortgaged the defendant’s property and pocketed some money in
advance. He then filed an action to annul this hypothecary. Nevertheless,
the defendant argued that his money should be remitted under ‘Section 64
of the 1872 Indian Contract Act’ dealing with invalid contracts. The Court
found that the contract entered into by a minor was null and invalid. The kid
is thus not responsible for paying any money which has already been
provided to him.

6. Free consent

7. Introduction
‘Consent’ defined.—Two or more persons are said to consent when they
agree upon the same thing in the same sense. —Two or more persons
are said to consent when they agree upon the same thing in the same
sense."

8. Elements of free consent
● Consent is considered to be free consent when the
following factors are satisfied:
● It should be free from coercion.
● The contract should not be done under the pressure of
undue influence.
● The contract should be done without fraud.
● The contract should not be made through
misrepresentation.
● The contract should not be made by mistake.

9. Coercion
● When a person commits or threatens to commit an act which is forbidden under
the Indian Penal Code, or detains an object unlawfully or threatens to do so with
the intention to force a person to enter into a contract, then it is said to be
coercion.
● Illustration:
“A” cause “B” to enter into an agreement which is forbidden under the Indian Penal
Code. “A” had done the act when an English ship was on the high seas. The “A” sues “B”
for breach of contract in Mumbai.
This agreement was considered to be void as “A” had employed coercion, though Indian
Penal Code was not in force at the place where the act was done.

10. Ammiraju v Seshamma
it was seen that there was a threat by the husband to commit
suicide, and he demanded his wife to release the property. It was
seen that the wife was prejudiced and it can’t be forbidden by law. So
here the threat to commit suicide by the husband amounts to
coercion on the wife.

11. Undue influence
When a contract is made between two parties and one of them is in the position to
dominate the will of the other party and takes unfair advantage of the position, then the
contract is said to be made out of undue influence.
Illustration
“A” an old person appoints “B” as his attendant and “B” is his nephew as well. “B”
demands a share of his property and “A” agrees to pay him. In this situation, “A” is
under the undue influence of “B”.

12. Fraud
Fraud’ defined.—‘Fraud’ means and includes any of the following acts committed by a party to a contract, or with his connivance,
or by his agent1, with intent to deceive another party thereto or his agent, or to induce him to enter into the contract:— —‘Fraud’
means and includes any of the following acts committed by a party to a contract, or with his connivance, or by his agent1, with
intent to deceive another party thereto or his agent, or to induce him to enter into the contract:—"
(1) the suggestion, as a fact, of that which is not true, by one who does not believe it to be true;
(2) the active concealment of a fact by one having knowledge or belief of the fact;
(3) a promise made without any intention of performing it;
(4) any other act fitted to deceive;
(5) any such act or omission as the law specially declares to be fraudulent. Explanation.—Mere silence as to facts likely to
affect the willingness of a person to enter into a contract is not fraud, unless the circumstances of the case are such that, regard
being had to them, it is the duty of the person keeping silence to speak2, or unless his silence, is, in itself, equivalent to speech.
Illustrations

13. Misrepresentation
“Misrepresentation” defined.—“Misrepresentation” means and includes— —
“Misrepresentation” means and includes—"
(1) the positive assertion, in a manner not warranted by the information of the person
making it, of that which is not true, though he believes it to be true;
(2) any breach of duty which, without an intent to deceive, gains an advantage of the
person committing it, or any one claiming under him, by misleading another to his
prejudice, or to the prejudice of any one claiming under him;
(3) causing, however innocently, a party to an agreement, to make a mistake as to the
substance of the thing which is the subject of the agreement

14. MIstake
Agreement void where both parties are under mistake as to matter of
fact.—Where both the parties to an agreement are under a mistake as to
a matter of fact essential to the agreement the agreement is void.