Law of Contract - I

Capacity To Contract (Minority,

Insanity And Disqualification by
Law), Liability for necessaries
supplied to a minor/person of
unsound-mind
PREPARED BY :-
Ms. LOVEPREET KAUR
Assistant Professor Of Law
RGNUL, Punjab
 Indian Contract Act, 1872 -
Who

 is competent to make a contract :-


Section 11
 Who is competent to make a contract :

 Section 11





Who is competent to make a contract:-


Section 11. Every person is competent to contract
who is of age of majority according to the Law to
which he is subject, who is of sound mind and not is
disqualified from contracting by any Law to which he
is subject.

Age of majority :- According to Section 3 of Indian

Majority Act, every person domiciled in Indian attains
majority on the completion of 18 years of age.
Exception :- 21 years

 Position of Agreements by Minor


1. Validity

 :- An agreement with a minor is void-ab-initio

2. A minor’s has received any benefit under a void
contract, he cannot be asked to return the same. 

3. If a minor has received any benefit under a void
contract, he cannot be asked to return the same. 

4. Fraudulent representation by a minor- no difference in
the status of agreement. The contract remains void. 

5. A minor with the consent of all the partners, be admitted
to the benefits of an existing partnership. 

6. Contracts entered into by minors are void-ab-initio.
Hence no specific performance can be enforced for such
contracts.
7. Minor as a trade union member
8. Guarantee for and by minor
Exceptions :- Position of Agreements by Minor





1. Contract for the benefit of a minor. 


2. Contract by Guardian
3. Contract for supply of Necessaries
4. Liability for Tort
 A Person of Unsound Mind





Person of Unsound Mind

(1) At time of entering into a contract, a person must
be sound mind. 


(2) An idiot
(3) Delirious persons
(4) Hypnotized persons
(5) Mental decay
(6) Drunken person
(7) Lunatic is not permanently of unsound mind 

Lunatic is not permanently of unsound mind




 Person Disqualified by Law





1. Alien enemy
2. Foreign sovereigns, diplomatic staff and
representative of foreign staff
3. Convict
4. Body corporate or company or corporation
5. Insolvent



 Liability for necessaries [Section - 68]


68. Claim

 for necessaries supplied to person
incapable of contracting, or on his account.—
If a person, incapable of entering into a
contract or anyone whom he is legally bound to
support, is supplied by another person with
necessaries suited to his condition in life, the
person who has furnished such supplies is
entitled to be reimbursed from the property of
such incapable person.

Meaning of Necessaries