Successfully reported this slideshow.
We use your LinkedIn profile and activity data to personalize ads and to show you more relevant ads. You can change your ad preferences anytime.



Published on


Presented by: MAHAM SHAH

Published in: Law
  • Hello! Who wants to chat with me? Nu photos with me here
    Are you sure you want to  Yes  No
    Your message goes here


  1. 1. BUSINESS AND LABOR LAW IQRA National University Peshawar Www.Facebook.Com/Rizwankhanan CAPACITY OF PARTIES PRESENTED BY: MAHAM SHAH
  2. 2. CAPACITY OF PARTIES Competent to contract The contracting parties must be competent to contract. MINOR A minor is a person who has not attained 18 years of age
  3. 3. NATURE OF MINOR’S AGREEMENTThe 15 rules regarding minor’s agreement are: 1. Void Agreement 2. Minor and Ratification 3. Minor and Estoppel 4. Minor and Repayment 5. Minor and Necessaries 6. Agreement on Behalf of Minor
  4. 4. 7. Minor as beneficiary 8. Minor as Agent 9. Minor as Partner 10. Surety for Minor 11. Minor as Member of Company 12. Minor and Insolvency 13.Contract by Minor and Adult 14.Liability of Minor’s parent 15.Minor and Negotiable Instruments
  5. 5. Void Agreement • An agreement with minor is void. • A minor is not liable to perform any act. Minor and Ratification • It means the acceptance of an act which is already done
  6. 6. Minor and Estoppel • The rule of estoppel does not apply on the minor Minor and Repayment • Minor has to repay if the court orders Minor and Necessaries • A person who supplies necessaries to a minor or his dependents can recover reasonable value from his property
  7. 7. Agreement on Behalf of Minor • An agreement can be made by the guardian on behalf of a minor Minor as Beneficiary • Any contract is valid if it is made for the benefits Minor as Agent • Minor can make his principal responsible to third parties
  8. 8. Minor as Partner • A minor can’t become a partner of a firm. Surety for Minor • When an adult stands surety for a minor in contract of agreement. Minor as a Member of Company • He cannot directly buy shares of a company because he is not competent to contract.
  9. 9. Minor and Insolvency • A minor cannot be declared insolvent. Contract by Minor and Adult • When a minor and an adult jointly enter into a contract with another person Liability of Minor’s Parents • Parents of a minor are not liable for agreement made by the minor.
  10. 10. Minor and Negotiable Instruments • A minor can make and deliver bill of exchange. Person of Unsound Mind For a valid contract it is necessary that each party to the contract must have sound mind.
  11. 11. Sound Mind A person must be able to understand the nature of contract. When he makes it, he is capable of understanding it and of forming a rational judgment as to its effects upon his interests. Effect on Agreement An agreement by a person of unsound mind is void but he can get benefits under it.
  12. 12. Burden of Proof Burden of proof can be define the duty upon a party to prove or disprove a disputed fact. Disqualified Person The following persons are disqualified from contracting.
  13. 13. 1)Joint Stock Company A joint stock company cannot enter into a contract outside the powers given to the company by its Memorandum of Association. 2)Diplomatic Agent The diplomatic agent means the staff of diplomatic mission of a foreign country in Pakistan. 3)Alien Enemy An alien whose country is at war with Pakistan is an alien enemy.
  14. 14. 4)Insolvent An insolvent person cannot enter in to a contract with any one 5)Convict A convict is a person who is imprisoned by the court. During the period of sentence, he cannot enter into a contract.