Page 16 - 01. Indian Contract Act, 1872

 A person who is usually of unsound mind but occasionally of sound mind,

may make a contract when he is of sound mind and he will be bound by it.
 A person who is usually of sound mind, but occasionally of unsound mind

may not make a contract when he is of unsound mind.

Persons disqualified by law from entering into contract:

(i) Alien enemy

 Alien is a person who is not an Indian citizen
 He becomes alien enemy on declaration of war between india and his

country
 He cannot enter into a contract with an Indian subject

(ii) Foreign Sovereigns and Ambassadors

 They enjoy certain special privileges due to which they cannot be
legally proceeded against in Indian courts.

 If contracts are entered into through agents, then agents becomes
personally responsible for the performance.

iii. Convicts

 Cannot enter into a valid contract while undergoing sentence nor he
can sue

Note: all of the above points are known as flaws in capacity

Free consent:
 As per the Indian contract Act,

“Two or more persons are said consent when they agree upon the same thing
in the same sense. “ (Consensus – ad – idem)

 Free consent means consent given by parties out of their free will on
their own without any fear, without any force without any compulsion or threat
from the other party.

 As per section 14 consent is said to be free when it is not caused by
(i) Coercion

(ii) Undue influence

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