The document discusses the capacity to contract under Indian law. It defines capacity as the competence or capability of parties to enter into a valid contract. Specifically: - Section 11 of the Indian Contract Act states that a person has capacity if they are of the age of majority according to the law they are subject to, of sound mind, and not disqualified from contracting by any other law. - Minors, persons of unsound mind, and those disqualified by law like aliens and insolvents lack the capacity to contract as their agreements would be void. - For minors, agreements are void from the beginning and they cannot be held liable, with exceptions for beneficial contracts and necessaries. Persons of uns

1. CAPACITY TO CONTRACT
MICHEAL SOLOMON L

2. Meaning
The “Capacity to Contract” means the
COMPETENCE or CAPABILITY of the parties to
enter into a VALID CONTRACT.
Thus , an AGREEMENT is valid and
ENFORCEABLE only if the parties to the contract
are QUALIFIED or COMPETENT to enter into a
CONTRACT.

3. Definition
According to Sec. 11 of the Indian Contract Act,
“Every PERSON is Competent to Contract who is
of the age of the 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 he is subject.”

4. Persons who are Competent to Contract
 A MAJOR
PERSONS OF SOUND MIND
PERSONS Not Dis Qualified from Contracting by LAW

5. Persons not Competent to Contract
 MINORS
 PERSONS OF UNSOUND MIND
PERSONS DISQUALIFED BY LAW

6. Effects of Minor’s Agreement
o An agreement by or with a minor is VOID AB INITIO.
oNo estoppel against minor
oNo ratification
oBeneficial contract
oDoctrine of Restitution and Minor
oTort and minor
oMinors as a partner of partnership
oMinor as an AGENT
oMinor as an INSOLVENT
oMinor and Negotiable Instruments
oLiability of parents/ guardian of a minor
oMinor’s liability for necessaries

7. Person of Unsound Mind
 IDIOT
LUNATICS
DRUNKEN or INTOXICATED PERSONS

8. Persons disqualified by law
 ALIEN ENEMIES
FOREIGN SOVEREIGN, AMBASSADORS, DIPLOMATIC STAFF
INSOLVENTS
CONVICTS
CORORATIONS and COMPANIES

9. THANK YOU… !!!!