Vous êtes sur la page 1sur 17


Presented By:-
 Sumit Chatterjee
 Sneha Chouhan
 Pranjali Dangat
 Sunny D’souza
 Triveni Rao
 Indian Contract Act 1872 is the main source of law
regulating contracts in Indian law, as subsequently
 It determines the circumstances in which promise made
by the parties to a contract shall be legally binding on
them. All of us enter into a number of contracts
everyday knowingly or unknowingly. Each contract
creates some right and duties upon the contracting
parties. Indian contract deals with the enforcement of
these rights and duties upon the parties.
 The Indian Contract Act 1872 sections 1-75 came into
force on 1 September 1872. It applies to the whole of
India except the state of Jammu and Kashmir.
Competency of
the parties
competent to
the contract .
 Section 10 of the Contract Act requires that the parties
must be competent to contract.

 Section 11 of the Indian contract act states that every

person is competent to contract, who is:-
the age of majority,
who is of sound mind and
who is not disqualified from contracting by law.


Idiot lunatic DRUNKED


Following persons are incapable
of competing to a contract:-
 A minor ,

 person of unsound mind and

 person Disqualified by law cannot enter into

contract Any contract with any such party will
be void Ab intio.
 A person who has not completed 18
years of age is called as minor.

 In case a guardian to the person or

property of the minor is appointed
by the court or the or the property of
the minor is put under the charge of
a court of wards, during the period
of his minority.
Agreement with minor is VOID
decided case illustration
 In Mohiri Bibis case ,the minor had executed a mortgage
for the sum of Rs.20,000 out of which the lender had
paid the minor only about 8,000. The mortage filed a
suit for the recovery of his mortgage money and for sale
of recovery of his mortgage money and for sale of the
property in case of default .The privy council held that
an agreement by a minor was absolutely void as against
him and therefore the mortage could not recover
mortage money nor could he have the minors property
sold under his mortgage
2. Person of
Unsound Mind
Person of Unsound Mind
 A person is said to be of sound mind for the
purpose of making a contract
if at the time when he makes it,
he is capable of understanding it and of
forming a rational judgment as to its effect
upon his interests. A person who is usually
of sound mind, but occasionally of unsound
mind, may not make a contract when he is
of unsound mind.
 The idiot, lunatic and drunkards are the
person of unsound mind.
Meaning of idiot, lunatic and
drunkards and drunkards
 Idiot:
A person who is devoid of any faculties of thinking or rational
judgment is called an idiot . .all agreements other than those for
necessaries of life, with idiots are absolutely void.

 Lunatics:
A person whose mental powers are deranged is called a lunatic.
agreement made with lunatic ,except those made during lucid
intervals (period in which he is in his senses )
For necessaries supplied to lunatic are valid. and the property of
lunatic can be taken.

 Drunkards: A person under the influence of drink or drugs stands on

the same footing as lunatic. an agreement with drunker is void.
 (a) A patient in a lunatic asylum,
who is at intervals of sound mind,
may contract during those intervals.

 (b) A sane man, who is delirious

from fever or who is so drunk that
he cannot understand the terms of a
contract or form a rational judgment
as to its effect on his interests,
cannot contract whilst such delirium
or drunkenness lasts.
3. Disqualified by law to
enter in contract
Following are the people
disqualified by law
 Alien enemy: A person who is not a citizen of
India is called an alien.

 Convicts: convict is incapable of entering into

contract .and the incapability ends when
sentence expires or punishment finish.

 Corporation: A company is artificial person

created by law. it can only contract through its
board of directors.
Section 11 of The Indian Contract Act specifies that
every person is competent to contract provided:

 He should not be a minor i.e. an individual who has not attained the age of
majority i.e. 18 years.

 He should be of sound mind while making a contract. A person with unsound

mind cannot make a contract.

 He is not a person who has been personally disqualified by law.