Capacity of Parties

Every person is competent to contract who is of

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.
From the above definition the following persons
are incapable to enter into contracts:
1. If he has not attained the age of majority
according to the law
 Capacity of Parties

2. If he is not of sound mind.

3. If he is disqualified from contracting by any
law.
Who is Minor :A minor is one who has not
completed his or her 18th years of age. So a
person becomes a major after the completion
of 18th years of age.
 Capacity of Parties

Why should minors be protected ?

Minor are very often exploited, ill-treated and

their properties stolen. Law provides that it is
the duty of the court to guard against their lack
of knowledge ill-use of minors. So Court
protect the minors.
 Capacity of Parties

Rules Regarding Minor’s Agreement :

1. Minor’s Agreement void
2. A minor can be promisee
3. Minor’s liability for necessaries
What are necessaries ?
What goods and services are necessaries
for minor are determined by their
status and social position.
 Capacity of Parties

Necessaries are include the following :

⚫ Goods : Physical goods are necessary not only
for bare existence and also for reasonable
comforts and luxurious to which the minor
concerned is habituated
⚫ Services rendered : A minor requires certain
services for example a nurse for an infant, a
teacher for him.
⚫ Loans : If required the minor can incur/take
loan for his necessaries
 Capacity of Parties

4. Law regarding compensation

5. No estoppel
6. No ratification
7. No specific performance
8. No insolvency
9. Partnership by minor
1o. A minor can be agent
11.Position of minor's guardian
12. A company shares of a minor