Section 11 The Indian Contract Act, 1872
Section 11 – The Indian Contract Act, 1872
Title: Who are competent to contract
Text of Section 11:
“Every person is competent to contract who is of the 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.”
✅ Key Elements of Section 11:
A person is competent to contract if they meet all three conditions:
Age of Majority:
The person must be 18 years or older (or 21 in some guardianship cases, under the Indian Majority Act, 1875).
Sound Mind:
The person must be mentally capable of understanding the terms of the contract and making a rational decision.
Not Disqualified by Law:
Some people are disqualified from contracting under specific laws, such as:
Insolvents
Foreign sovereigns
Convicts
Corporations (with limitations)
⚖️ Legal Effect:
If a person does not fulfill these three conditions, any contract made is void.
For example, a contract entered into by a minor is void ab initio (invalid from the beginning).
📌 Example:
A 17-year-old signs a contract to buy a car.
👉 This contract is void, because the person is not of the age of majority.
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