Capacity of Parties

1
Capacity of Parties

• Every person is competent to contract who is of
  age of majority according to the law to which he
  is subject, and who is of sound mind and is not
  disqualified from contracting by any law to which
  he is subject.
• From the above definition the following persons
  are incapable to enter into contracts
• If he has not attained the age of majority
  according to the law

2
Capacity of Parties

• 2. If he is not of sound mind.
• If he is disqualified from contracting by any
  law.
• Who is Minor A minor is one who has not
  completed his or her 18th years of age. So a
  person becomes a major after the completion of
  18th years of age.

3
Capacity of Parties

• Why should minors be protected ?
• Minor are very often exploited, ill-treated and
  their properties stolen. Law provides that it is
  the duty of the court to guard against their lack
  of knowledge ill-use of minors. So Court protect
  the minors.

4
Capacity of Parties

• Rules Regarding Minors Agreement
• Minors Agreement void
• A minor can be promisee
• Minors liability for necessaries
• What are necessaries ?
• What goods and services are necessaries for minor
  are determined by their status and social
  position.

5
Capacity of Parties

• Necessaries are include the following
• Goods Physical goods are necessary not only for
  bare existence and also for reasonable comforts
  and luxurious to which the minor concerned is
  habituated
• Services rendered A minor requires certain
  services for example a nurse for an infant, a
  teacher for him.
• Loans If required the minor can incur/take loan
  for his necessaries

6
Capacity of Parties

• 4. Law regarding compensation
• 5. No estoppel
• 6. No ratification
• 7. No specific performance
• 8. No insolvency
• 9. Partnership by minor
• 1o. A minor can be agent
• 11.Position of minor's guardian
• 12. A company shares of a minor