THIS SLIDE COVER WHOLE TOPIC OF CAPACITY OF PARTIES TO CONTRACT AND WHICH ARE THE ONES WHO ARE NOT LIABLE TO DO CONTRACT.

1. .
PRESENTED BY
SHWETA BANJARE

2. CAPACITY OF
PARTIES
According to section 11 of The Indian
Contract ,1872
“Every person is competent to contract who
is the age of majority
According to the law which he is subject,
and who is of sound mind, and is not
disqualified from contracting by any law to
which he is subject”
Note : here competent means
having the necessary ability (legal) !
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3. CAPACITY OF PARTIES
 The parties must be Competent to contract, but the question that arises now is
that what parties are competent and what are not .
 The contracting parties must be :
 1. AGE OF MAJORITY
 2. SOUND MIND
 3. NOT DISQUALIFIED BY LAW

4. AGE OF
MAJORITY Any person who has not attained the age
of majority is known as ‘minor’ .
 An agreement with minor is Void-ab-initio
.
 Case ( Mohiri biwi Vs. Dharmodas ghose)
 A Contract made with a minor is void .
 Since any person less than 18 years of age
does not have the capacity to contract, any
agreement made with a minor is void-ab-
initio.
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5. SOUND MIND
 Soundness of mind of a person depends upon two
facts :
 A. His capacity to understand the contents of the
person concerned, and
 B. His ability to form a rational judgement as to its
effect upon his interests.
 If a person is incapable of both , he suffers from
unsoundness and he’s not capable to enter into a
contract and any contract entered into by him would
be void .( sec11)
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6. DISQUALIFIED BY LAW
 Following are the persons who are disqualified by law to make a contract :
 1. ALIEN ENEMY : An alien enemy is a person whose country is at war with India.
 In India ,a contract with an alien enemy is void. No contract can be made with an alien enemy
during the subsistence of war, except with prior approval of the Indian government.
 2. INSOLVENT : Insolvency is the state of being unable to pay the money owed, by a person or
company on time; and an insolvent person cannot be subject to any contractual agreement .
 3.CONVICTS : A Convict is person , who is sentenced by a competent court to the death
sentence or imprisonment. A convict cannot enter into a valid contract while undergoing
sentence ,nor can sue, his incompetency is over when the period of his sentence is over or he is
pardoned.
 4.GOVERNMENT : Contact with the government is required to comply with certain formalities,
if such formalities are not complies with ,such contract would be void.
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7. This Photo by Unknown Author is licensed under CC BY-SA