Question

 Who is competent to contract? State the position of contracts with a minor

12 Aug 2026
Answer :
Word Count : 1505
Under the Indian Contract Act, 1872, a valid contract can be made only by persons who are competent to contract. Section 11 of the Act provides that every person is competent to contract if he or she has attained the age of majority according to the law to which the person is subject, is of sound mind, and is not disqualified from contracting by any law to which he or she is subject. Thus, competency to contract depends upon three essential conditions: attainment of majority, soundness of mind, and absence of any statutory disqualification. A person must have attained the age of majority to enter into a valid contract. Under the Majority Act, 1875, a person ordinarily attains majority on completing eighteen years of age. Therefore, a person below eighteen years is generally regarded as a minor and is not competent to enter into a contractual obligation. In certain circumstances involving legal guardianship or court-appointed guardians, the applicable legal rules may affect the age of majority, but the general contractual rule is that a minor lacks contractual capacity. The second requirement is that the person must be of sound mind. Section 12 of the Indian Contract Act states that a person is of sound mind for the purpose of contracting if, at the time when the contract is made, he is capable of understanding the contract and of forming a rational judgment about its effect upon his interests. A person who is ordinarily of unsound mind may enter into a _______ ____ ________ _______ __________ ________ ___ __________ ________ ______ ___ ______.
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