Transcript Capacity to contract - Chandigarh University

Person not competent to make contract
Minor
Person of unsound mind
Person disqualified by law
Rules regarding minor’s agreement
 Nature of minor agreement---Mohori Bibee’s Vs
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Dharmodaas case
No Ratification- (new bond execution for old transaction
and bond)
No Estoppel against minor
Minor can be promisee- (e.g Insurance case)
Liability for torts
No insolvency
Partnership
Minor can be an agent
Joint contract by minor &adult
Surety for minor
Persons of unsound mind
Unsoundness may arise from:
Idiocy- person with no interval of insaneness
Lunacy- disease of brain due to mental stress. He may
have intervels of insanity
Drunkenness
Hypnotism- artificial induced sleep
Mental Decay-On account of old age
Persons Disqualified by Law
 Alien enemies
 Foreign Sovereigns
 Insolvent
 Convict
 Corporation