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Sec.10 12 of ICA,1872
Section 10
Parties to the contract must be competent to contract
INCAPACITY
Minority (immature mind) Disqualified by law (Status)
Unsound mind
Idiot
Lunatic
Drunkard
Political Corporate Status: Status: a) Alien Enemy a) Company b) Alien Friend b) Statutory c) Foreign Sovereigns & Corporations d) Ambassadors
MINORITY
Sec. 3, of Indian Majority Act,1875
Minors contracts
A contract with or by a minor is void & a minor therefore can-not bind himself by a contract.1 A minor can be a promisee or a beneficiary A minors agreement can-not be ratified by the minor on his attaining majority2
If a minor has received any benefit under a void contract,he can-not be asked to refund the same3 A minor is always allowed to plead minority4 A minor can-not be a partner in a partnership firm A minors state is liable to a person who supplies necessaries of life to a minor5 A minor can act as a agent
Minors parents/guardians are not liable to a minors creditor for the breach of contract by the minor
Mental Incompetence Sec.12 : Test of soundness of mind Soundness of mind of a person depends on two Facts : i) His capacity to understand the terms of the contract & ii) His ability to form a rational judgment as to its effect upon his interest