Who is Competent Party Under the Indian Contract Act ? Discuss Minors Position in Contract.
Who are competent parties?
According to section 11 of the Indian Contract Act , 1872
Competent Parties –
Every Person who have attained
- Age of Majority as per the Indian Majority Act, 1875
- Who is of Sound mind and
- Is not disqualified by law
- Case :
Mohiribibi vs. Dharamdas Ghosh (1903)
In the case of Mohiribibi vs. Dharam das Ghosh It was decided that Agreement with or by a minor is void and in operative ab initio. (From the very beginning )
- Positions Of Minor’s Agreement (Agreement with Minor is Void Ab Initio : Explain)
- Minor’s Agreement is Void Ab intito
- A minor can be a promise or a beneficiary
- No Ratification on Age is Allowed
- Minor as a partner
- Minor as a Agent
- Minor’s liability
- Can be Enforceable by Guardian
- Cannot be Enforceable by Law or Minor
- Unsound Mind
According to section 12 of the Indian Contract Act ,
“A person is said to be of sound mind for the purpose of making a contact if ,at the time when he makes it, is capable of understanding it and of forming a rational judgment as to its effect upon his interests. “
- Test of Sound Mind
- Capacity to understand the business concerned
- Ability to form a rational judgment.
- As to its effect on a person’s interest.
- Contract in Lucid Interval
- A person who is usually of unsound mind, but occasionally of sound mind may make a contract when he is of sound mind.
- A person who is usually of sound min, but occasionally of unsound mind may not make a contract when he is of unsound min.
Disqualified by Law / By Status
- Foreign Sovereign
- Married Women
- Professional Incapacity
- Felon or Convicts’