Page 14 - 01. Indian Contract Act, 1872

5. Here the contract cannot be The contract can be executed if it is

executed declared valid by the aggreived party.

Competency/ Capacity of parties to Contact

 It means that parties to the agreement must have capacity to enter into a valid
contract.

 Person‟s may be either natural or artificial

 Natural persons means human beings
 Artificial person means corporations.

According to section 11:
Every person is competent to contract, who according to the law to which he is

subject to:
(i) is of the age of majority

(ii) is of sound mind
(iii) is not disqualified by any other law to which he is subject to”.

 A person is disqualified to enter into contracts if he/she is:
(i) a minor

(ii) a person of unsound mind
(iii) otherwise disqualified by the law of land to enter into contract

(iv) an alien enemy

(v) an alien insolvent
(vi) a convict undergoing imprisonment

Fact:

(i) Dharmo das Ghose, a minor, entered into a contract for borrowing a
sum of Rs 20, 000 out of which lender paid him Rs. 8000
(ii) Minor executed mortgage of property in favor of lender

(iii) Minor sued for setting aside mortgage.
.
Answer:

Any money advanced to a minor cannot be recovered as sec to and
11 makes the minor‟s contract absolutely void.
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