CONTRACTUAL CAPACITY OF THE PARTIES INTRODUCTION:- ACCORDING TO SEC 10 OF THE CONTRACT ACT, ALL THOSE AGREEMENTS CAN BE ENFORCED BY LAW, WHICH ARE MADE BY THE PERSON HAVING CONTRACTUAL CAPACITY. INTRODUCTION:- ACCORDING TO SEC 10 OF THE CONTRACT ACT, ALL THOSE AGREEMENTS CAN BE ENFORCED BY LAW, WHICH ARE MADE BY THE PERSON HAVING CONTRACTUAL CAPACITY. ACC TO SEC.11, “Every person is competent to contract who is of the age of majority according to the law which he is subject, and who is of sound mind, and is not disqualified by from contracting by any law to which he is subject. ACC TO SEC.11, “Every person is competent to contract who is of the age of majority according to the law which he is subject, and who is of sound mind, and is not disqualified by from contracting by any law to which he is subject.

Conditions regarding capacity to contract 1) He must be a ‘major person’ according to the law which he is subject. 2) He should have ‘sound mind’. 3) He should not have been disqualified by law from contracting. In other words the following persons are deemed to be incompetent to contract 1. Minors 2. Persons of unsound mind 3. Persons disqualified by law to which they are subject.

Who is minor ? According to section 3 of the Indian majority act “A minor is a person who has not completed eighteen years of age.’’ Section 11 clearly states that a minor is not competent to contract and if a person enters in to contract with the minor then such contract is void and inoperative ab- initio. MINOR

RULES REGARDING CONTRACT WITH MINOR OR LEGAL POSITION OF MINOR 1. An agreement with or by a minor is void and inoperative ab-initio : Acc. To section 11 of the act, a minor is not competent to contract. The case of MOHIRI BIBI VS DHARMDAS GHOSH NEED TO BE MENTIONED HERE. Acc. to this case Dharmdas Ghosh was a minor.he executed a mortgage of some house to secure a loan of Rs A part of this amount Rs 8000 was advanced to the minor.After this money lender BRAHM DUTT handed over the documents to his for attorney for the preparation of mortgage and other formalities. Acc. to this case Dharmdas Ghosh was a minor.he executed a mortgage of some house to secure a loan of Rs A part of this amount Rs 8000 was advanced to the minor.After this money lender BRAHM DUTT handed over the documents to his for attorney for the preparation of mortgage and other formalities.

2. Contract for necessities of life: Acc to section 68 of the Indian Contract Act, “ if a person incapable of entering into contract, or any one whom he is legally bound to support, is supplied by another person with the necessaries suited to his conditions in life, the person who has furnished such supplies is entitled to be reimbursed from the property of such incapable person.” 3. Minor’s contract for his benefits : Minor is allowed to enforce contract which is of some benefits to him. In this context the case of ROBERT VS. GREY need to be mentioned here. 3. Minor’s contract for his benefits : Minor is allowed to enforce contract which is of some benefits to him. In this context the case of ROBERT VS. GREY need to be mentioned here. 4.Contract by parents or guardian of the minor: if the minor’s parents or guardians or court of wards makes a contract on minor’s behalf and for his benefit, this contract is treated as valid one.the contract of marriage of minor and contract for service of minor are covered. In this context the case of RAJ RANI VS PREM ADIP need to be mentioned here. 5.Minor’s contracts cannot be ratified on his becoming major : The case of RAGHWA VS.SRINIVAS need to be mentioned here. 6. Doctrine of Estoppel does not apply against minor: Section 115 of the Evidence act explains ‘Estoppel as follows,”Where one person has,by his declaration,act or omission,intentionally caused or permitted another person to believe a thing to be true and to act upon such belief,neither he nor his representative shall be allowed in any suit or proceeding between himself and such person or his representatives, to deny the truth of these things.”

7.Minor as an agent: 8. Minor as a partner: 9.Minor as a shareholder: 10.Surety Liability for minor: 11. Position of minor in negotiable instruments : 12. Minor as a joint promisor: 13. Liability for minor for torts (civil wrong) 14. Minors right to hold property and interest therein 15. Minor can be a promisee or a beneficiary: 16. Minor cannot be Adjudged insolvent: MINORITY A BLESSING

Acc.to sec 12,”A person is said to be sound mind for the purpose of making a contract if at the time when he makes it,he is capable of understanding it and forming a rational judgment as to its effects upon his interests” Acc.to sec 12,”A person is said to be sound mind for the purpose of making a contract if at the time when he makes it,he is capable of understanding it and forming a rational judgment as to its effects upon his interests” PERSONS OF UNSOUND MIND

IDIOTLUNATIC DRUNKEN OR DELIRIOUS PERSON A SENILE PERSON TYPES OF PERSONS OF UNSOUND MIND

OTHER DISQUALIFIED PERSONS ALIEN ENEMY ALIEN ENEMY FOREIGN SOVEREIGNS AND AMBASSADORS FOREIGN SOVEREIGNS AND AMBASSADORS CONVICTS CONVICTS INSOLVENCY INSOLVENCY CORPORATION/COMPANY CORPORATION/COMPANY MARRIED WOMEN MARRIED WOMEN