The document discusses the legal capacity to contract under Indian law. It states that minors under 18, persons of unsound mind, and those disqualified by law cannot legally enter into contracts. An example is provided of a minor taking out a loan and mortgage that was later deemed void since minors have no contractual capacity. The document outlines other instances where agreements with minors would be invalid and notes additional groups of people like idiots, lunatics, and married women that are considered disqualified from contracting under Indian law.

1. Made By : Prachi Gupta

2. According to Section 11 every person is
competent to contract who :
 Is the age of majority ,
 Is of sound mind and
 Not disqualified from contracting by law to
which he is subject .

3.  Minors ,who are not of the age of
majority .
 Persons of unsound mind ,and
 Persons disqualified to contract by
any law

4. According to Section 3 of INDIAN MAJORITY
ACT,1875 a minor is a person who has not
Attained the age of 18 years .

5.  Dharmodas , a minor executed lent a money for Rs.
20000 at 12% interest means Rs 8000 and secured the
loan by way of mortgage executed by the MINOR in
favour of the Dharmodas ghose
 The mortgage wanted the refund of Rs 8000
 Later the mother of the children claim that the mortgag
was void for lack of capacity .
 It was held that the agreement with MINOR was
VOID AB INITIO and question of refunding money
does not arise .

6.  The council held the capacity by the minor
is void
 The minor has no capacity to contract
hence the mortgage was not valid
 He cannot be compelled to repay the
amount advanced to him
 As he is not bound by the promise made
by him under the contract

7.  An agreement with a MINOR , being absolutely
void ,and cannot be ratified by him on his becoming
a major .
 A MINOR cannot be declared as insolvent .
 A MINOR cannot become a partner but may be
admitted for the benefits of partnership if other
partner agrees.
 No liability of guardian for the acts of MINOR
 A MINOR cannot become a member of a company .

8. According to SECTION 12 , a person is said
to be of sound mind when he is capable of
understanding the terms of contract and he
can take judgement about its effects .

9.  Idiots : has completely lost his mental
power
 Lunatic
 Drunken

10.  Alien Enemy
 Convict
 Insolvent
 Married woman