Submitted by: Submitted by madhuk543
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Category: Other Topics
Date Submitted: 01/15/2013 08:29 AM
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....