Contractual capacity

Sec. 11: Every person is competent to

contract who is of the age of majority acc. To
law to which he is subject, and who is of
sound mind, and is not disqualified by any
law to which he is subject

Minor

18 years of age
21 years if
Where a guardian of the minor persons property has been
appointed under the Guardians and Wards act
Where the superintendence od minors property is assumed by a
court of wards.
Mohri Bibee vs. Dharamdas (1903)
In this case, the minor had rxecuted amortgage for a sum of Rs.
20,000 out of whichthe lender had paid the minor only Rs. 8000.
The minor then filed a suit for setting aside the mortgage.. It was
contended that as the contract was voidable and the minor was
now repudiating it, the amount of Rs. 8000 actually paid to the
minor must be refunded under section 65 of the Indian Contract
Act. The primary council pointed out that as the minors contract
was absolutely void, no question of refunding money can arise in
these circumstances
Minors agreemant is absolutely void
and devoid of any consequences

Minors agreement

An agreement with a minor is void ab- initio

The rule of estoppel does not apply to minor
No restitution except in certain cases
Minors liability for necessaries
Minors liability in tort
No specific performance
No ratification
A minor can be a beneficiary
Partnership by minor
A minor can be an agent
Minor can be shareholder
A minor can not be declared insolvent
Minor can not be a surety
Position of minors parents
Contracts of apprenticeship and service

Persons of unsound mind

Sec 12: A person is said to be of sound mind for
the purpose of making a contract if, at the time
when he makes it is capable of understanding it
and forming a rational judgment as to its effects
upon his interests
Idiot-congenital lack of dev. of brain-incapable of
entering into a contract
Lunatic-mental faculties of thinking are deranged.
Lucid intervals when he is perfectly sane If
contract done at that time, it is binding.
Drunken or delirious person-temporary incapacity.
Under the effects of intoxication can not enter
into a contract
Mental decay or senile mind-contract if done void
Agreement by unsound mind- Absolutely void and

Persons unqualified by law

Alien enemies
Foreign sovereigns and ambassadors
Convicts
Insolvents
Married women
Professional persons
Corporations and companies