Page 12 - IC24 LEGAL ASPECTS OF LIFE ASSURANCE
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Following elements go to make a valid contract:
✓ Proposal and acceptance and their communication
✓ Parties to the contract and their capacity to enter into legally
enforceable agreements
✓ Consensus ad idem
✓ Consideration
✓ Legality of the object
Section 11 states who is competent to enter into a contract:
individual who is a major, of sound mind and not disqualified by
law.
A person who is above the age of 18 years and enter into a
contract. A person who is insane, drunk, lunatic cannot enter into a
contract when he's not in sound state of mind. A minor, being a
person who is not of the age of majority, is not competent to
