2. *According to section 11 of the
INDIAN 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.”
3. *Minors, who are not of the age of majority.
*Persons of unsound mind, and
*Persons disqualified to contract by any law
4. *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.
5. *According to sec 12:
“ 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 & of forming a
rational judgment as to its effect
upon his interest.”
6. *Idiots – has completely lost their
mental powers
*Lunatic – the person losses the
capacity due to the illness of brain
or mental bodily distress.
*Drunkenness
7. *Alien enemy
*Insolvents- all property in hand of Official
assignee. He can enter into contract when court
passes an order of discharge
*Convicts – persons who are sentenced to
imprisonment cannot enter into contract during
that period).