Professional Documents
Culture Documents
Capacity To Contract
Capacity To Contract
CONTRACT
Meaning & Definition…
• According to section 11 of the contract
act:
“ Every person is competent to contract who
is of the age of majority according to the
law to which he is subject, & who is of
sound mind, and is not disqualified from
contracting by any law to which he is
subject.”
Persons disqualified from
entering into the contract…
• Minors, who are not of the age of
majority.
• Persons of unsound mind, and
• Persons disqualified to contract by
any law ( Insolvents )
MINOR
• Who is a minor – Acc. To sec 3 of
Indian majority act, 1875, a minor is
a person who has not attained the
age of 18 years.
Rules relating to an
agreement with a minor
• First rule- law protects minors
against their own inexperience &
against the possible improper designs
of those more experienced
• Second rule-the law should not cause
unnecessary hardship to persons who
deal with minors
Minor’s Agreements
1. Agreement is void ab initio:
Case mohori bibi vs. Dharmodas Ghose –
Dharmodas , a minor executed a mortgage for Rs.
20000 declaring himself major & received Rs.
8000 from mohori bibi, a mortgagee. The minor
wanted to set aside the mortgage. The mortgagee
wanted the refund of Rs 8000. It was held that
the agreement with the minor was void ab initio &
question of refunding money does not arise.
• However, the minor may enforce the agreement
against the other party if he has carried out his
obligation.