Competency of

parties
Disqualified
by law
Submitted by- Mehak Naggar
Class- MBA 2nd semester
Submitted to- Prof. Anupama Adya
Meaning of competency of parties to contract
The capacity of parties to the contract means the legal ability of the parties to
enter into a contract.
Who are Competent to Contract?
Every person is legally competent to contract if he fulfills the following three
condition
• He has attained the age of majority
• He is of sound mind
• He is not disqualified from contracting by any other law to which he is
subject.

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 Topic one
Topic two​
Agenda Topic three
Topic four

Presentation Title 3
Parties disqualified
by law
Alien enemy

• It refers to a person who is a citizen or resident of a

country that is currently at war with the country where
they are currently located.
• An alien enemy is someone who is considered an enemy
of the state or a foreign enemy, and as such, is not
entitled to the same legal rights as citizens or residents of
that country. 5
Foreign sovereign
• They have some special privileges and generally cannot be
sued unless they on their own submit to the jurisdiction of
our law courts.
• They can enter into contracts and enforce those contracts in
our courts.
• But an Indian citizen has to obtain a prior sanction of the
central government in order to sue them in our courts.
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 Insolvent
When a debtor is adjudged insolvent his property vests
in the official receiver or official assignee. As such
the insolvent is deprived of his power to deal in that
property.

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 Convict

A convict when undergoing imprisonment is

incapable of entering into a contract. He
can however enter into or sue on a contract
if he is lawfully at large under a license
called ticket of leave.
Thank you