This document provides an overview of the Week 2 lecture on capacity to contract in Contract Law II. The key learning objectives are to understand who lacks capacity to contract, including minors, drunk or mentally ill persons, and corporations. Minors' contracts are generally void, except for necessaries and beneficial services. Drunk or mentally ill persons' contracts are voidable. Corporations' contracts must be within their constitutional documents, and government contracts must comply with statutory requirements to be binding. The lecture covers these topics in detail and provides example cases to illustrate the legal principles. It concludes with review questions to assess understanding of the learning objectives.
This document provides an overview of the Indian Contract Act of 1872. Some key points:
- The Act was drafted in 1866 and revised over subsequent years, coming into force in 1872 with 238 sections organized into general principles and special contracts.
- A valid contract requires an offer and acceptance, lawful consideration, capacity and consent of the parties, a lawful object, and compliance with any legal formalities.
- Contracts can be void, voidable, unenforceable, express, implied, unilateral, bilateral and more depending on the circumstances.
- The Act defines essential elements like offer, acceptance, consideration and sets out what impacts validity such as defects in consent, mistakes, illegality and public policy concerns
The document discusses the capacity of minors to contract under Indian law. It summarizes that minors, persons of unsound mind, and those disqualified by law are not competent to enter valid contracts. While a minor's agreements are voidable, the 1903 Privy Council case of Mohoribibi v Dharmodas Ghose established they are not absolutely void. Later cases further modified this stance, finding that agreements made by guardians on a minor's behalf or for their benefit can be binding. The document outlines exceptions where minors may be bound, such as beneficial contracts, as well as the inability of minors to ratify agreements made during their minority through subsequent confirmation.
A minor is not competent to enter into a contract. An agreement made by a minor is void. However, a minor can be reimbursed for necessaries supplied that are suited to their condition in life from their property. A minor may also be admitted to the benefits of a partnership with consent of all partners but is not personally liable for acts of the firm. On attaining majority, a minor admitted to partnership benefits can choose to become a partner within 6 months or leave the firm.
This document discusses the essential elements of consideration for forming a valid contract. It defines consideration as the price for which a party's promise is made. Consideration must be real and not illusory, move at the desire of the promisor, and be valuable in the eyes of the law. The document outlines different types of consideration including present, past, future, unlawful, and illusory consideration. It also discusses capacity and consent requirements for valid contracts.
Law of Attraction. Law of firms and business. Before you open business you have to read law. There are many laws in Cambodia . If you have done any wrong from the laws, you will be fine or punish by the level of you against the laws. Laws is laws. However, you have to obey the laws. As human, we live in society in order to help each other to obey the law. Laws is created by human. Human have to follow what it say in it.
Communication is about Laws too. PUC have one subject called Laws. Laws can learn in every school in Cambodia. Because it is Laws.
T1, 2021 business law lecture week 5 - law of torts - negligence 1markmagner
The document discusses the key elements of negligence claims under tort law. It begins by defining a tort and distinguishing torts from contracts and criminal law. It then outlines the four elements needed to prove negligence: (1) a duty of care owed by the defendant; (2) a breach of that duty through unreasonable conduct; (3) harm caused to the plaintiff; and (4) a reasonably close causal connection between the breach and harm. The document provides examples of cases that further explain these elements and the defenses of contributory negligence and voluntary assumption of risk.
The document discusses the capacity of parties to enter into contracts under Indian law. It defines who is competent to contract and notes that agreements with minors are void. A minor is deemed to have attained majority at age 18 except under certain circumstances like where a guardian has been appointed, in which case majority is 21. Agreements with minors are not valid and a minor cannot be estopped from pleading minority to avoid the agreement. However, if a minor fraudulently misrepresented their age, the court may award compensation to the other party. Upon reaching the age of majority, a minor can potentially ratify agreements made as a minor.
The document summarizes key aspects of contract law under the Indian Contract Act of 1872. It defines a contract and outlines essential elements for a valid contract such as offer, acceptance, consideration, capacity to contract, and free consent. It discusses different types of contracts such as valid/invalid, express/implied, executed/executory, and unilateral/bilateral contracts. It also covers concepts such as privity of contract, minority, coercion, and undue influence.
This document provides an overview of the Indian Contract Act of 1872. Some key points:
- The Act was drafted in 1866 and revised over subsequent years, coming into force in 1872 with 238 sections organized into general principles and special contracts.
- A valid contract requires an offer and acceptance, lawful consideration, capacity and consent of the parties, a lawful object, and compliance with any legal formalities.
- Contracts can be void, voidable, unenforceable, express, implied, unilateral, bilateral and more depending on the circumstances.
- The Act defines essential elements like offer, acceptance, consideration and sets out what impacts validity such as defects in consent, mistakes, illegality and public policy concerns
The document discusses the capacity of minors to contract under Indian law. It summarizes that minors, persons of unsound mind, and those disqualified by law are not competent to enter valid contracts. While a minor's agreements are voidable, the 1903 Privy Council case of Mohoribibi v Dharmodas Ghose established they are not absolutely void. Later cases further modified this stance, finding that agreements made by guardians on a minor's behalf or for their benefit can be binding. The document outlines exceptions where minors may be bound, such as beneficial contracts, as well as the inability of minors to ratify agreements made during their minority through subsequent confirmation.
A minor is not competent to enter into a contract. An agreement made by a minor is void. However, a minor can be reimbursed for necessaries supplied that are suited to their condition in life from their property. A minor may also be admitted to the benefits of a partnership with consent of all partners but is not personally liable for acts of the firm. On attaining majority, a minor admitted to partnership benefits can choose to become a partner within 6 months or leave the firm.
This document discusses the essential elements of consideration for forming a valid contract. It defines consideration as the price for which a party's promise is made. Consideration must be real and not illusory, move at the desire of the promisor, and be valuable in the eyes of the law. The document outlines different types of consideration including present, past, future, unlawful, and illusory consideration. It also discusses capacity and consent requirements for valid contracts.
Law of Attraction. Law of firms and business. Before you open business you have to read law. There are many laws in Cambodia . If you have done any wrong from the laws, you will be fine or punish by the level of you against the laws. Laws is laws. However, you have to obey the laws. As human, we live in society in order to help each other to obey the law. Laws is created by human. Human have to follow what it say in it.
Communication is about Laws too. PUC have one subject called Laws. Laws can learn in every school in Cambodia. Because it is Laws.
T1, 2021 business law lecture week 5 - law of torts - negligence 1markmagner
The document discusses the key elements of negligence claims under tort law. It begins by defining a tort and distinguishing torts from contracts and criminal law. It then outlines the four elements needed to prove negligence: (1) a duty of care owed by the defendant; (2) a breach of that duty through unreasonable conduct; (3) harm caused to the plaintiff; and (4) a reasonably close causal connection between the breach and harm. The document provides examples of cases that further explain these elements and the defenses of contributory negligence and voluntary assumption of risk.
The document discusses the capacity of parties to enter into contracts under Indian law. It defines who is competent to contract and notes that agreements with minors are void. A minor is deemed to have attained majority at age 18 except under certain circumstances like where a guardian has been appointed, in which case majority is 21. Agreements with minors are not valid and a minor cannot be estopped from pleading minority to avoid the agreement. However, if a minor fraudulently misrepresented their age, the court may award compensation to the other party. Upon reaching the age of majority, a minor can potentially ratify agreements made as a minor.
The document summarizes key aspects of contract law under the Indian Contract Act of 1872. It defines a contract and outlines essential elements for a valid contract such as offer, acceptance, consideration, capacity to contract, and free consent. It discusses different types of contracts such as valid/invalid, express/implied, executed/executory, and unilateral/bilateral contracts. It also covers concepts such as privity of contract, minority, coercion, and undue influence.
The document discusses key concepts related to contracts under Indian law including:
1. A contract is defined as an agreement enforceable by law, which requires an offer, acceptance, intention to create a legal relationship, consideration, capacity to contract, and free consent.
2. There are various types of valid and invalid contracts. Valid contracts include absolute, contingent, express, and implied contracts. Invalid contracts include void, voidable, illegal, and unenforceable contracts.
3. Essential elements for a valid contract include offer and acceptance, intention to create a legal relationship, consensus ad idem, consideration, capacity to contract, free consent, legality of object, and possibility of performance.
The document defines various legal concepts related to contracts under Indian law such as offer, acceptance, consideration, capacity and consent. It explains essential elements for a valid contract and different types of contracts. It also discusses concepts like coercion, undue influence, fraud and misrepresentation that can invalidate a contract due to lack of free consent.
This document defines the key elements of a legally binding contract under law. It explains that a contract requires an offer and acceptance, consideration, intention to create a legal relationship, consent, legal capacity to contract, and legality. It provides specific examples of how these elements apply in insurance contracts, such as the insured's consideration being the payment of premiums in exchange for the insurer's promise to pay if a covered loss occurs.
The document discusses various topics related to law and contracts. It begins by defining law and noting that law establishes a system of rules to govern behavior. It then discusses commercial law, which governs business transactions. It also examines the institutions that enforce law, such as the legislature, executive, and judiciary. The document goes on to explore where laws come from, including that statutes are made by legislatures and common law originates from customs and practices. It also outlines different legal systems like civil law, common law, and Sharia law. The majority of the document then focuses on defining and discussing the essential elements of contracts, including proposal/offer, acceptance, consideration, and consent. It examines the types of contracts and what
The document provides an overview of contract law presented by a group. It discusses key topics like the definition of a contract, essential elements, capacity and intention. The presentation aims to help understand contracts and distinguish between valid, void and voidable contracts, including valid infant contracts. Team members are listed and 6 learning objectives are provided on defining contracts and understanding capacity, intention and how they relate.
This document defines the key elements and essentials of a valid contract under Indian law. It discusses that a contract requires two parties, a definite offer and acceptance, consideration, lawful purpose and intent to create legal obligations. It provides examples of case laws that further explain these requirements like there must be intent to create legal binding agreement, consideration must be given with consent of promisor, minor's agreements are void etc. It also defines what makes a contract void or voidable like lack of free consent, illegality of purpose, failure to meet essential elements.
This document discusses various provisions related to contracts and obligations under Philippine law. It begins by explaining the standard of care required to fulfill obligations (diligence of a good father of a family) and discusses examples of liability. It then addresses the rights of creditors prior to delivery of goods, distinguishing personal and real rights. Different types of delivery are outlined, including actual, constructive, and delivery of accessions/accessories. Remedies for failed obligations are discussed, noting that specific performance is not available and the obligation must be fulfilled at the debtor's expense. The document concludes by covering default, including when it arises and its effects on risk and liability.
1) A contract is defined as an agreement that is enforceable by law, requiring an offer, acceptance of that offer, and consideration.
2) For a contract to be valid, it must meet conditions such as clear terms, lawful purpose, capacity and consent of the parties.
3) Consent must be free and not obtained through coercion, undue influence, misrepresentation, fraud or mistake.
According to Indian contract law, a person must be of the age of majority, of sound mind, and not otherwise legally disqualified to have the capacity to enter into a valid and enforceable contract. A minor, defined as a person under 18 years of age, lacks such capacity and any agreements entered into by a minor are void ab initio. However, a minor can be held liable to pay for necessities provided to them, such as food, clothing, shelter, and services related to education or healthcare. A person of unsound mind, including idiots, lunatics, or those intoxicated, also lacks the capacity to contract if unable to understand the nature and effect of the agreement.
This document discusses the eligibility of parties to enter into a contract under Indian law. It states that minors (those under 18), persons of unsound mind, those disqualified by law such as alien enemies or insolvents, and convicts currently imprisoned may lack the capacity to contract. For minors, contracts are void ab initio and they cannot be compelled to pay benefits received nor can their guardians be held liable. Exceptions exist for minors' necessities or if they have a guardian appointed. The document provides an example case of a contract with a minor being voided.
This document provides an overview of contract law in the Philippines. It discusses the key elements and principles of contracts and obligations under the Civil Code, including:
1. The four essential requisites of an obligation are a passive subject, active subject, object or presentation, and a juridical tie.
2. Obligations can arise from law, contracts, quasi-contracts, delicts or crimes. Contracts require consent, a certain object, and cause or consideration.
3. A contract is a meeting of minds where one party binds themselves to give something or render a service to the other party. Contracts must not be unlawful or violate public policy.
The Indian Contract Act 1872 establishes the framework for contracts in India. It aims to ensure that rights and obligations from contracts are upheld and legal remedies are available for breaches. The Act applies across India except Jammu and Kashmir. It covers the basic principles of contracts, indemnity, guarantee, bailment, and agency. A contract requires an offer and acceptance, lawful consideration, capacity and consent to contract, a lawful objective, and certainty of terms. The Act defines different types of contracts based on their validity, formation, and performance requirements.
This document discusses key elements of contract formation under Malaysian law, including offer, acceptance, consideration, intention to create a legal relationship, legal capacity, and free consent. It also discusses circumstances that can invalidate a contract such as misrepresentation, undue influence, and mistake. The document analyzes a hypothetical case regarding a minor entering into a contract and concludes the contract would be void due to lack of legal capacity. Relevant cases are also discussed.
The document discusses various topics related to business law in India including the definition of law and business, essential elements of a valid contract, discharge of contracts, remedies for breach of contract, quasi-contracts, contracts of indemnity and guarantee, bailment, agency, sale of goods, and negotiable instruments. It provides definitions and key aspects of each topic in brief paragraphs.
The document summarizes key aspects of contract law under the Indian Contract Act of 1872. It defines a contract as an agreement that is enforceable by law. The essential elements of a valid contract are offer and acceptance, lawful consideration, capacity of parties to contract, lawful object, and free consent. A contract can be discharged through performance, mutual consent, lapse of time, operation of law, impossibility of performance or breach. In case of breach, the aggrieved party may seek remedies like rescission, damages, specific performance, quantum meruit or injunction.
Consideration is something of legal value given in exchange for a promise. It must benefit the promisor or detriment the promisee, and be bargained for. Courts generally do not question the fairness of consideration if legally sufficient. Consideration is lacking for preexisting duties unless exceptions apply, or past consideration because there is no bargain. Uncertain performance like illusory promises may lack consideration. Settling liquidated debts requires the party give up the legal right to contest the amount, while settling unliquidated debts provides consideration. Promises can also be enforced through detrimental reliance or promissory estoppel.
Consideration is required for a valid contract and refers to something of value that is exchanged between parties, typically involving detriment to one party or benefit to the other. Consideration shows the parties' intent to be bound by the contract and can take various forms, such as payment of money, provision of goods or services, or a promise to do or refrain from doing something. Consideration can be past (already provided), present (exchanged concurrently with promises), or future (to be provided at a later date). For a contract to be legally binding, there must be consideration provided by both parties.
The document discusses void agreements under Indian contract law. It explains that void agreements are those that are not enforceable by law, such as agreements that were void from the beginning (void ab-initio) due to lacking necessary elements, or agreements that were initially valid but later became void. Examples of void ab-initio agreements provided include those restraining marriage or trade, preventing legal recourse, or being too uncertain. The document also discusses the doctrine of frustration which voids agreements when unexpected events make the contractual obligations impossible to perform.
The document discusses the capacity and competency of parties to enter into a contract under Indian law. It addresses several key points:
1) Only parties who are of sound mind and have attained the age of majority can enter into a valid contract. Minors and persons of unsound mind lack contractual capacity.
2) A minor's agreements are void ab initio. However, a minor can be a promisee or beneficiary in a contract. They are also liable for necessaries supplied to them like food and shelter.
3) A person is considered of unsound mind if they are unable to understand the contract or form a rational judgment on its effects. Their capacity depends on the mental state at the time
1) Consideration is something of value that is exchanged between parties to an agreement. It is required for a contract to be valid. Consideration can be past, present or future as long as it is real and lawful.
2) For consideration to be valid, it must induce the promisor to make a promise and cannot be something the promisor is already legally obligated to do. Consideration does not need to be financially adequate.
3) Exceptions to the requirement of consideration include natural love and affection between family as well as agreements to pay for past voluntary services rendered.
The document discusses the capacity to contract under Indian law. It states that minors, people of unsound mind, and those disqualified by law are not competent to contract. The age of majority is 18 years according to the Indian Majority Act of 1875. The document summarizes key cases related to minor's agreements, including that such agreements are void. It discusses exceptions for beneficial contracts, the doctrine of restitution, option to retire from beneficial contracts after majority, and rules around ratification.
The document discusses key concepts related to contracts under Indian law including:
1. A contract is defined as an agreement enforceable by law, which requires an offer, acceptance, intention to create a legal relationship, consideration, capacity to contract, and free consent.
2. There are various types of valid and invalid contracts. Valid contracts include absolute, contingent, express, and implied contracts. Invalid contracts include void, voidable, illegal, and unenforceable contracts.
3. Essential elements for a valid contract include offer and acceptance, intention to create a legal relationship, consensus ad idem, consideration, capacity to contract, free consent, legality of object, and possibility of performance.
The document defines various legal concepts related to contracts under Indian law such as offer, acceptance, consideration, capacity and consent. It explains essential elements for a valid contract and different types of contracts. It also discusses concepts like coercion, undue influence, fraud and misrepresentation that can invalidate a contract due to lack of free consent.
This document defines the key elements of a legally binding contract under law. It explains that a contract requires an offer and acceptance, consideration, intention to create a legal relationship, consent, legal capacity to contract, and legality. It provides specific examples of how these elements apply in insurance contracts, such as the insured's consideration being the payment of premiums in exchange for the insurer's promise to pay if a covered loss occurs.
The document discusses various topics related to law and contracts. It begins by defining law and noting that law establishes a system of rules to govern behavior. It then discusses commercial law, which governs business transactions. It also examines the institutions that enforce law, such as the legislature, executive, and judiciary. The document goes on to explore where laws come from, including that statutes are made by legislatures and common law originates from customs and practices. It also outlines different legal systems like civil law, common law, and Sharia law. The majority of the document then focuses on defining and discussing the essential elements of contracts, including proposal/offer, acceptance, consideration, and consent. It examines the types of contracts and what
The document provides an overview of contract law presented by a group. It discusses key topics like the definition of a contract, essential elements, capacity and intention. The presentation aims to help understand contracts and distinguish between valid, void and voidable contracts, including valid infant contracts. Team members are listed and 6 learning objectives are provided on defining contracts and understanding capacity, intention and how they relate.
This document defines the key elements and essentials of a valid contract under Indian law. It discusses that a contract requires two parties, a definite offer and acceptance, consideration, lawful purpose and intent to create legal obligations. It provides examples of case laws that further explain these requirements like there must be intent to create legal binding agreement, consideration must be given with consent of promisor, minor's agreements are void etc. It also defines what makes a contract void or voidable like lack of free consent, illegality of purpose, failure to meet essential elements.
This document discusses various provisions related to contracts and obligations under Philippine law. It begins by explaining the standard of care required to fulfill obligations (diligence of a good father of a family) and discusses examples of liability. It then addresses the rights of creditors prior to delivery of goods, distinguishing personal and real rights. Different types of delivery are outlined, including actual, constructive, and delivery of accessions/accessories. Remedies for failed obligations are discussed, noting that specific performance is not available and the obligation must be fulfilled at the debtor's expense. The document concludes by covering default, including when it arises and its effects on risk and liability.
1) A contract is defined as an agreement that is enforceable by law, requiring an offer, acceptance of that offer, and consideration.
2) For a contract to be valid, it must meet conditions such as clear terms, lawful purpose, capacity and consent of the parties.
3) Consent must be free and not obtained through coercion, undue influence, misrepresentation, fraud or mistake.
According to Indian contract law, a person must be of the age of majority, of sound mind, and not otherwise legally disqualified to have the capacity to enter into a valid and enforceable contract. A minor, defined as a person under 18 years of age, lacks such capacity and any agreements entered into by a minor are void ab initio. However, a minor can be held liable to pay for necessities provided to them, such as food, clothing, shelter, and services related to education or healthcare. A person of unsound mind, including idiots, lunatics, or those intoxicated, also lacks the capacity to contract if unable to understand the nature and effect of the agreement.
This document discusses the eligibility of parties to enter into a contract under Indian law. It states that minors (those under 18), persons of unsound mind, those disqualified by law such as alien enemies or insolvents, and convicts currently imprisoned may lack the capacity to contract. For minors, contracts are void ab initio and they cannot be compelled to pay benefits received nor can their guardians be held liable. Exceptions exist for minors' necessities or if they have a guardian appointed. The document provides an example case of a contract with a minor being voided.
This document provides an overview of contract law in the Philippines. It discusses the key elements and principles of contracts and obligations under the Civil Code, including:
1. The four essential requisites of an obligation are a passive subject, active subject, object or presentation, and a juridical tie.
2. Obligations can arise from law, contracts, quasi-contracts, delicts or crimes. Contracts require consent, a certain object, and cause or consideration.
3. A contract is a meeting of minds where one party binds themselves to give something or render a service to the other party. Contracts must not be unlawful or violate public policy.
The Indian Contract Act 1872 establishes the framework for contracts in India. It aims to ensure that rights and obligations from contracts are upheld and legal remedies are available for breaches. The Act applies across India except Jammu and Kashmir. It covers the basic principles of contracts, indemnity, guarantee, bailment, and agency. A contract requires an offer and acceptance, lawful consideration, capacity and consent to contract, a lawful objective, and certainty of terms. The Act defines different types of contracts based on their validity, formation, and performance requirements.
This document discusses key elements of contract formation under Malaysian law, including offer, acceptance, consideration, intention to create a legal relationship, legal capacity, and free consent. It also discusses circumstances that can invalidate a contract such as misrepresentation, undue influence, and mistake. The document analyzes a hypothetical case regarding a minor entering into a contract and concludes the contract would be void due to lack of legal capacity. Relevant cases are also discussed.
The document discusses various topics related to business law in India including the definition of law and business, essential elements of a valid contract, discharge of contracts, remedies for breach of contract, quasi-contracts, contracts of indemnity and guarantee, bailment, agency, sale of goods, and negotiable instruments. It provides definitions and key aspects of each topic in brief paragraphs.
The document summarizes key aspects of contract law under the Indian Contract Act of 1872. It defines a contract as an agreement that is enforceable by law. The essential elements of a valid contract are offer and acceptance, lawful consideration, capacity of parties to contract, lawful object, and free consent. A contract can be discharged through performance, mutual consent, lapse of time, operation of law, impossibility of performance or breach. In case of breach, the aggrieved party may seek remedies like rescission, damages, specific performance, quantum meruit or injunction.
Consideration is something of legal value given in exchange for a promise. It must benefit the promisor or detriment the promisee, and be bargained for. Courts generally do not question the fairness of consideration if legally sufficient. Consideration is lacking for preexisting duties unless exceptions apply, or past consideration because there is no bargain. Uncertain performance like illusory promises may lack consideration. Settling liquidated debts requires the party give up the legal right to contest the amount, while settling unliquidated debts provides consideration. Promises can also be enforced through detrimental reliance or promissory estoppel.
Consideration is required for a valid contract and refers to something of value that is exchanged between parties, typically involving detriment to one party or benefit to the other. Consideration shows the parties' intent to be bound by the contract and can take various forms, such as payment of money, provision of goods or services, or a promise to do or refrain from doing something. Consideration can be past (already provided), present (exchanged concurrently with promises), or future (to be provided at a later date). For a contract to be legally binding, there must be consideration provided by both parties.
The document discusses void agreements under Indian contract law. It explains that void agreements are those that are not enforceable by law, such as agreements that were void from the beginning (void ab-initio) due to lacking necessary elements, or agreements that were initially valid but later became void. Examples of void ab-initio agreements provided include those restraining marriage or trade, preventing legal recourse, or being too uncertain. The document also discusses the doctrine of frustration which voids agreements when unexpected events make the contractual obligations impossible to perform.
The document discusses the capacity and competency of parties to enter into a contract under Indian law. It addresses several key points:
1) Only parties who are of sound mind and have attained the age of majority can enter into a valid contract. Minors and persons of unsound mind lack contractual capacity.
2) A minor's agreements are void ab initio. However, a minor can be a promisee or beneficiary in a contract. They are also liable for necessaries supplied to them like food and shelter.
3) A person is considered of unsound mind if they are unable to understand the contract or form a rational judgment on its effects. Their capacity depends on the mental state at the time
1) Consideration is something of value that is exchanged between parties to an agreement. It is required for a contract to be valid. Consideration can be past, present or future as long as it is real and lawful.
2) For consideration to be valid, it must induce the promisor to make a promise and cannot be something the promisor is already legally obligated to do. Consideration does not need to be financially adequate.
3) Exceptions to the requirement of consideration include natural love and affection between family as well as agreements to pay for past voluntary services rendered.
The document discusses the capacity to contract under Indian law. It states that minors, people of unsound mind, and those disqualified by law are not competent to contract. The age of majority is 18 years according to the Indian Majority Act of 1875. The document summarizes key cases related to minor's agreements, including that such agreements are void. It discusses exceptions for beneficial contracts, the doctrine of restitution, option to retire from beneficial contracts after majority, and rules around ratification.
A detailed presentation on Capacity to Contract under Indian Contract Act, 1872
Made By: ___________
Edited By: Ayush Patria, Sangam University, Bhilwara (Raj.)
(For Law Laboratory)
Follow us on Instagram: @Law_Laboratory
Website: www.lawlaboratory.in
The document discusses the capacity to contract under family law and the rules regarding minors entering into contracts. It is divided into three categories:
1) Enforceable contracts - Contracts for necessaries that provide something suitable for the minor's station in life are binding. Contracts of beneficial service or apprenticeship are also generally enforceable if predominantly beneficial.
2) Voidable contracts - Contracts involving ongoing or long-term obligations can be entered by a minor but avoided if repudiated before maturity. Examples include leases or share purchases.
3) Unenforceable contracts - Trading contracts are never binding on a minor. Loans can also not be enforced through normal contractual remedies but restitution
The document provides an overview of key concepts in Indian contract law under the Indian Contract Act of 1872. It defines a contract as an agreement that is legally enforceable. It outlines the essential elements for a valid contract such as offer, acceptance, consideration, capacity of parties, lawful object and intention to create a legal relationship. It also discusses classification of contracts based on validity, nature and execution. Key terms like offer, acceptance, consideration and their essentials are defined. Exceptions to the general rule of consideration and the concept of a stranger to contract are also summarized.
1. The document discusses the capacity to contract under Indian law, specifically regarding competency of parties.
2. It outlines categories of people considered incompetent to contract, including minors, people of unsound mind, insolvents, convicts, corporations exceeding their powers, and alien enemies during times of war.
3. For minors, it examines the implications of their agreements being void ab initio, their liability for necessaries, and exceptions where they can receive benefits or act as agents without liability.
T1, 2021 business law lecture 2 - contracts 1markmagner
The document provides an overview of contract law, including definitions and classifications of contracts, as well as the essential elements required for a valid contract. It discusses the difference between a contract and a mere agreement, and explains that a contract requires an intention to create legal relations between the parties. It also outlines the rules regarding offer and acceptance, noting that a valid contract is formed when there is an offer, acceptance of that offer, and consideration. The document provides examples to illustrate key concepts like the difference between an offer and an invitation to treat.
T1, 2021 business law lecture 2 - contracts 1markmagner
This document provides an introduction to contract law. It defines a contract as an agreement between two or more parties that intends to create legal rights and obligations that can be enforced in court. Contracts can be classified as formal contracts, which do not require consideration, or simple contracts, which do require consideration from both parties. The essential elements for a valid contract are intention, agreement, consideration, capacity, consent, and legality. Intention refers to the parties intending to create legal relations. Agreement requires an offer from one party that is then accepted by the other party.
This document discusses contractual capacity and incapacity under Indian law. It states that only natural persons who are of sound mind and the age of majority, and not otherwise disqualified, are competent to contract under Section 11. Minors, persons of unsound mind, aliens, foreign states, and some corporations may lack contractual capacity. A minor's contracts are void against the minor to protect their interests. Consent must be free of coercion, undue influence, fraud, or misrepresentation. Contracts can be discharged through performance, mutual consent, lapse of time, operation of law, impossibility of performance, or breach.
The document provides an overview of business law and the Indian Contract Act of 1872. It defines what a contract is and lists the essential elements of a valid contract, including offer and acceptance, lawful consideration, capacity and consent of parties, lawful object, and certainty. It also discusses classification of contracts, modes of revocation of an offer, remedies for breach of contract such as damages and specific performance, and ways a contract can be discharged including performance, agreement of parties, and breach.
This document discusses the differences between agreements and contracts. It notes that agreements are broader and include any promises between two parties, while contracts are a specific type of agreement that is legally enforceable. For an agreement to be considered a contract, it must meet additional requirements like lawful consideration, lawful object, and free consent. Several examples are provided to illustrate agreements that do not qualify as contracts due to issues like an impossible or illegal object. The document also outlines key elements needed for a valid contract like capacity and intention to create legal obligations.
The document discusses various ways in which a contract can be terminated, including revocation, rejection, lapse of time, death or change of status of a party, and failure of a condition. It also covers capacity to contract, including discussing minors, married women, persons of unsound mind, corporations, prodigals, and insolvents. Various other elements of a valid contract are explained such as intention to create legal relations, consideration, causation, adherence to legal formalities, and factors that can invalidate a contract.
The document provides an overview of key concepts in Indian contract law:
1. It summarizes the history and provisions of the Indian Contract Act of 1872, which forms the basis of contract law in India except Jammu and Kashmir.
2. It defines a contract and lists the essential elements for a valid contract, including offer and acceptance, lawful consideration, free consent, and lawful object.
3. It discusses different classifications of contracts such as valid, void, voidable, and illegal agreements. It also summarizes the modes of revocation of an offer.
4. Remedies for breach of contract are outlined, including cancellation, restitution, specific performance, injunctions, quantum meruit,
The indian contract act, 1872 for classJasdeep Sran
The document discusses Indian contract law. It defines key terms like contract, agreement, offer, acceptance, consideration and consent. It explains essential elements of a valid contract and different types of contracts. It also covers capacity to contract, free consent, coercion, undue influence, fraud, misrepresentation and mistake. Finally, it discusses unlawful and void agreements.
The document discusses the key elements of a valid contract according to commercial law. It defines a contract as an agreement that is enforceable by law, requiring offer and acceptance, consideration, lawful object and intent to create legal relations. It provides exceptions to the consideration requirement, such as agreements on account of natural love/affection. The document also discusses concepts like capacity of parties, free consent, certainty and legality that make an agreement legally enforceable. It classifies contracts based on method of formation, time of performance, parties involved and validity.
This document provides an overview of key concepts in Indian contract law according to the Indian Contract Act of 1872. It defines important terms like contract, agreement, offer, acceptance and consideration. It outlines the essential elements for a valid contract and different types of contracts such as valid, void, illegal and unenforceable contracts. It also discusses capacity to contract, free consent, coercion, undue influence, fraud, mistake and unlawful objectives that can make agreements void. The document comprehensively covers major principles of contract formation and validity according to Indian law.
The document discusses the Indian Contract Act of 1872. It provides objectives of the act, which are to ensure rights and obligations from contracts are honored and legal remedies are available for aggrieved parties. Key aspects of contracts covered include essential elements like offer/acceptance, consideration, capacity of parties and free consent. Specific types of contracts that require writing are also outlined, such as those related to time barred debts, property transfers, and promissory notes. Overall, the document provides an overview of important concepts regarding valid contracts according to the Indian Contract Act of 1872.
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Ppt lw202 topic 1 incapacity to contract-sem 2 2017
1. LW202 Contract Law II-
Week 2
Learning Objectives(LO) of this lecture:
At the end this topic you should be
able to:
determine who is a minor;
2. Cont’d
Explain what contract for necessaries are;
Explain what contracts for beneficial services
are;
Explain the legal implications of a person
entering into a contract while drunk or
mentally ill person;
Discuss the idea of ultra vires relating to the
capacity of corporations to contract; &
Explain the circumstances when government
contracts will not be binding.
3. Outline of the Lecture
look at expected outcome of the
lecture, & readings, ;
Delivery of lecture;
Summary
Ask a few questions to ascertain
whether the LO have been achieved.
4. Topic 1 – Incapacity to Contract
A) In order for a contract to exist-apart
from other requirements-(offer, acceptance, consideration,
intention to legal bind parties, competence )parties must
have capacity legally recognized by law to enter
into any form of contract.
B) There is another side to this view-which
involves certain individuals who lack
capacity to contract.
Who lacks capacity to contract?
• Children (minors – below 18/21)
• Drunk People or Mentally ill people
• Companies (ultra vires)
• Government (instances of non-compliance with
statutory requirement)
5. Natural Persons who lack Capacity
• First is Minor- who is a minor? A minor
according to common law is someone
below the age of majority. The common
law age of majority is 21 years, although it
varies from one country to another.
6. Cont’d
In England the Family Law Reform
Act(1969) UK has reduced the age of
majority to 18 years.
Some countries in the SP, Vanuatu,
Marshall & Nauru have adopted the
similar approach-reduced majority years
to 18 years.
The rest of the countries like Fiji, Niue,
Samoa and Cook Islands the age of
majority remains to be 21 years.
7. Cont’d
•Incapacity of Minor
We know a minor generally does not
have the capacity to enter into a
contract-but what is at issue- what
happens when someone enters into a
contract with a minor?
8. Cont’d
• At common law there are generally three
types of contracts concerning minors:
• Unless a domestic legislation says
otherwise contracts with minors are
classified under three headings:
• valid—that is, absolutely binding;
• voidable—disclaimable at the option of
the minor or the minor denies the contract;
or
• void—that is, no legal effect from the start.
9. Cont’d
•Contracts which are binding on
Minors:
Contracts for necessaries; and
Contracts for beneficial
services(employment)
10. Cont’d
• I) Contracts for necessaries
Under contract law a minor is only liable for a
contract for supply of necessaries.
a) Necessaries are not only such
things as food, clothing, education
and so on, which are vital to that
person’s existence, but also those
suitable to the minor.
b) A minor is liable under a contract for
necessaries provided the price is
reasonable. The onus of showing that
the goods are necessaries lies with the
supplier of the goods.
11. Cont’d
To identify whether something is a
necessary one has to ask two
questions:
1) Is the subject matter of the contract
necessary in eyes of the law; and
2) Is the subject matter necessary for
the minor.
•The first question is important for the
second question to follow.
12. Cont’d
• In Ryder vs. Wombwell (1868) LR 4 Exch 32, a minor who
moved in high society was supplied with a pair of diamond
and ruby cufflinks and a silver goblet ware. It was observed
that there were exceptional cases wherein even things
merely ornamental in nature could be deemed necessary.
However, the court held that the goods in the particular case
could not be necessaries as the supplier could not prove that
the ornamental goods were especially necessary for the
minor in question.
• Necessity is a relative fact. Once certain goods or particular
services are put in the general category of necessaries, it is
also important to see if they are appropriate to the
particular minor – depending on the minor’s normal
standard of living and whether the minor already has an
adequate supply of such goods or services. Whether the
minor really needs them?
13. Cont’d
• In the case of Chapple v Cooper (1844)
153 ER 105 a widow(minor) was held to
be liable for the funeral expenses of her
husband. It was classed as a contract for
necessaries. In that case, the Judge
indicated that necessaries were not only
restricted to things needed to survive,
rather, it could include goods and services
required to maintain a reasonable living.
14. Cont’d
•What does the Fiji Sales of Goods Act
(Cap 230) says about ‘Necessaries’-
•Section defines ‘necessaries as goods
suitable to the condition in life of such
infant or minor or other person and to
his actual requirements at the time of
the sale and delivery.
15. Cont’d
•Further section 4 provides that, where
necessaries are sold and delivered to
an infant or minor or to a person who
by reason of mental incapacity or
drunkenness is incompetent to
contract, he must pay a reasonable
price therefore. This position has been
affirmed in the case of Nash v Inman
[1908] 2KB 1.
16. Cont’d
• II) Contracts for Beneficial
Services(employment)
-In the case of De Francesco v Barnum
(1890) 45 Ch D 430 A minor of 14 years,
joined the plaintiff as an apprentice in order
that she might be taught stage dancing. The
apprenticeship was to an agreed sum per
night, that she would not marry and that she
would not accept any other professional
engagement without the plaintiff’s
permission.
17. Cont’d
• The plaintiff was not bound to engage minor
or to maintain her while unemployed; the
amount payable for minor’s services was a
trifling sum and moreover, the plaintiff was
at liberty to terminate the contract in the
event of minor being found unfit for stage
dancing. Held: The agreement as a whole
was unreasonable and completely put minor
at the mercy of the plaintiff; it was not
beneficial to minor and was therefore not
binding on her.
18. Cont’d
•In order to determine whether a
contract is for beneficial services the
contract must be examined as a whole.
If the contract when looked at as a
whole is for the benefit of the minor
then it is a contract of beneficial
service.
19. Cont’d
•In the case of Doyle V White City
Stadium [1935] 1 KB 110 a contract
between a minor and White City
Stadium for boxing was upheld as
valid and binding on the minor
because the contract as a whole was
for the benefit of the minor.
20. Cont’d
Voidable—disclaimable at the option of the minor
or the minor denies the contract or in other words,
the contracts are binding on minors if the minors
do not disclaim, deny or repudiate the contract.
At common law, contracts which confer an interest
in property on the minor, which involves
continuous or recurring obligations, are valid
unless denied or repudiated by the minor.
21. Cont’d
•Examples include contracts to lease or
purchase land, contracts for the
purchase of shares, partnerships. In
these types of transactions the minor
is bound by the contract and the
contract is valid as long as the minor
does not disclaim or repudiate the
contract. As soon as the minor
repudiates the contract he or she is no
22. Cont’d
• Void—that is, contract with no legal effect
from the start if it is not ratified by the
minor.
• Apart from contracts for necessaries and
contracts which are binding however not
being repudiated/denied by the minor ALL
contracts by minor are VOID at common
law. However they can be validated if the
minor ratifies/affirms them upon reaching
majority.
23. Other matters concerning Minor
• Where a minor through deceit or fraud
obtains non necessary goods (for example
by fraudulently misrepresenting his or her
age) then the minor can be required to
restore the goods or pay over the proceeds
of any sale of them(Stocks v Wilson).
However if the minor obtains money by
deceit or fraud then he or she can only be
compelled to restore the exact cash.(R
Leslie Limited v Sheill).
24. Cont’d
• A Minor’s Tortious Liability
• Although a minor is liable for all torts
committed such as negligence, defamation etc.,
he or she will not be liable for any tort
committed which is connected with a contract
that is not binding on the minor. The reason
being that if the minor was liable for the tort
then the law would be enforcing an
unenforceable contract-R Leslie Ltd v Shell
[1914] 3KB 607.
• BREAK- 5 minutes
25. Other natural persons who lack
Capacity
I) Mentally ill; and
II) Drunkard
They are liable for contracts of
necessaries-but are not liable for other
contracts (for non-necessaries) they
enter into while they do not have
capacity. These contracts are
voidable.
26. Cont’d
• The mentally ill people and drunkards
have to satisfy two tests in order to have
the contract set aside:
• i) They must have been incapable of
understanding the nature of what they
were agreeing to at the time the contract
was being made; and
• ii) The other party to the contract
must have been or should have been aware
of their condition and their incapacity.
27. Cont’d
•In the case of Mathews v Baxter
(1873) LR 8 Exch 132 the defendant
went to an auction while he was drunk
and successfully bid for certain
property. After he had sorbed up, the
defendant ratified the contract. He
then refused to proceed with the
transaction.
28. Cont’d
The court held that the defendant was
liable because he ratified the contract
after his period of drunkenness had
passed. He ratified the contract when
his capacity was regained, then he was
bound by the contract.
29. Corporations & Government
Contracts
The artificial persons:
i) Corporations; and
ii) Government Contract.
The Memorandum of Association(MOA) and Articles of
Association(AOA) regulate the actions of the officers of the
corporation. It generally contains clauses which dictate the
types of contract that the corporation can enter into. Unless
legislation provides otherwise, if a corporation enters into a
contract in respect of something that is not provided for in
the MOA & AOA then that contract is unenforceable against
the corporation. That contract is said to be ultra vires
(beyond power) and invalid.
30. • Government contracts
• -where the agreement between a
government and another party is to carry
out some aspect of government projects,
but the agreement is not in compliance
with statutory requirements. Government
cannot be bound by such contract. Eg,
awarding of $1,000,000 to build a public
road, the project was awarded to a
company without a tendering process.
31. Review Questions
1. Who is a minor?
2. what is a contract for necessaries?
3. what is a contract for beneficial services ;
4. Explain the legal implications of a person entering into
a contract while drunk or mentally ill person;
5. Discuss the idea of ultra vires relating to the capacity of
corporations to contract;
6. Explain the circumstances when government contracts
will not be binding.
32. Next Week
• Next week, we will begin with Topic 2 –
Misrepresentation
• Misrepresentation is a situation whereby one party was
encouraged to enter into the contract by a false
statement made by another party.
• In this topic we will look at the types of statements that
amount to misrepresentations and the consequences of
misrepresentations.
• Reading list as listed in your Topic Guide
• Read this case for next week’s lecture: Spice Girls Ltd v.
Aprilia World Service BV [2002] EWCA Civ 15(Poole, Case
book on Contract Law, p.598
33. Reminder
• Regularly check Moodle for updates,
where new notices will be posted, make
attempt to attend lectures and tutorials.