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Sayed Eqbal 12033
*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.”
*Minors, who are not of the age of majority. 
*Persons of unsound mind, and 
*Persons disqualified to contract by any law
*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.
*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.”
*Idiots – has completely lost their 
mental powers 
*Lunatic – the person losses the 
capacity due to the illness of brain 
or mental bodily distress. 
*Drunkenness
*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).
THANK YOU

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Capacity to contract

  • 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).