Asok Nadhani

Capacity to Contract

Parties entering into contract must have the capacity to do so (i.e., must have the legal ability to enter into a valid contract).

4.1 Persons competent to Contract

As per section 11, ­a person shall be competent to contract only if he fulfils all the following three qualifications. He should be:

a.    Age of majority : of the age of majority according to the law to which he is subject (i.e., he should not be a minor);

b.   Sound mind : of sound mind (i.e., he should be able to understand the contract and form a rational judgment),

c.    Not disqualified : not disqualified from contracting by any law to which he is subject.

For more details, refer to Mercantile law by Asok K Nadhani, BPB Publications, www.bpbonline.com, bpbpublicaions@gmail.com