Madyy

CAPACITY TO CONTRACT

CAPACITY TO CONTRACT

S. 10 requires that the parties shall be

competent to contract.

S. 11. Who are competent to contract .- Every

person is competent to contract who is of

• the age of majority according to the law to

which he is subject, and

• who is of sound mind, and

• is not disqualified from contracting by any

law to which he is subject .

Persons incompetent to

contract

Minor

Persons of

Persons

Unsound Disqualified

Mind

by Law

MINORS

• According to Indian Majority Act, 1875, a person attains

majority on completion of 18 years of his age. But when

a guardian of a minor person or property has been

appointed by the court, he attains majority on

completion of 21 years of age.

• NATURE OF MINORS AGREEMENT

• While s. 10 mandates that the agreement shall be

between parties competent to contract and S. 11

indicates that the minor is incapable of entering into

contract. But neither section provides as to the effect of

agreement entered into by a minor.

• This led to a controversy

Mohoribibi v. Dharmadas Ghose

FACTS: dt. a minor mortgaged his properties in favour of

pt., a money lender to secure the loan of Rs. 20,000/-,

after some money was advanced pt. came to know about

infancy of the dt. He filed a suit to repudiate the contract

and recover the money advanced

HELD: Minor’s agreement is void ab initio

REASON: “the question whether a contract is void or

voidable presupposes the existence of a contract within

the meaning of the Act, and cannot arise in the case of an

infant (minor). General presumption that every man is the

best judge of his own interests is suspended in the case of

child (minor).”

Ruling is generally followed in India and applied both to the

advantage and disadvantage of minor.

Mir Sarwanjan v. Fakhruddin Mohd. Choudhury

FACTS: A contract to purchase certain immovable property by a

guardian on behalf of minor – minor sued for specific

performance....