The document discusses key sections of the Indian Contract Act of 1872 related to the capacity of parties to enter into a contract. It addresses issues such as the age of majority, soundness of mind, persons who are disqualified from contracting, free consent between two or more parties, and vitiating factors that can negate consent such as coercion, undue influence, fraud, and mistake. The document provides explanations of these various legal concepts and cites relevant sections from the Contract Act.

1. 09/10/12 07:52 Raza Lilani . razamr@hotmail.com

2. SECTION 11 of Contract Act, 1872
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3. 1. Age of Majority
2. Persons of Sound Mind
3. Persons NOT Disqualified
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4.  Age of Majority is 21 years according to
Majority Act 1857
 Assignment
 Nature Of Minor’s Agreement
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5.  Section 12 of Contract Act, 1872
 A person is said to be of sound mind for
the purpose of making a contract if, at
the time when he makes it, he is capable
of undertaking it and of forming a
rational judgment as to its effect upon
his interests.
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6.  A person who is usually of unsound
mind, but occasionally of sound mind,
may make a contract when he is of
sound mind.
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7.  A person who is usually of sound mind,
but occasionally of unsound mind, may
not make a contract when he is of
unsound .mind.
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8.  . A patient in a lunatic asylum; who is at
intervals of sound mind.
 He may contract during those intervals
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9.  A sane man, who is delirious from fever or
who is so drunk that he cannot understand
the terms of contract or form a rational
Judgment as to its effect on his interest
 He cannot contract whilst such delirium or
drunkenness lasts.
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10. Disqualified by any law:
 Political
 Professional or
 Legal statute
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11. Person:
 Natural
▪ Joint Stock Company
 Artificial
▪ Diplomatic Agent
▪ Alien enemies
▪ Insolvent
▪ Convict
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12. 09/10/12 07:52 Raza Lilani . razamr@hotmail.com

13. Section 13
Two or more persons are said to
consent when they agree upon the
same thing in the same sense.
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14. Consent is said to be free when it is
not caused by
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15. 07:52 09/10/12 Raza Lilani . razamr@hotmail.com

16.  Nature of Minor’s Agreement
 Coercion as defined in section 15
 Undue Influence as defined in section 16
 Difference between Coercion and Undue
Influence
 Fraud as defined in Section 17
 Misrepresentation as defined in section 18
 Mistake as defined in section 19
 Difference between Fraud and
Misrepresentation
07:52 09/10/12 Raza Lilani . razamr@hotmail.com