Rules regarding contracting made by minors in persons declared incompletent by law

Rules regarding contracting made by minors in persons declared incompletent by law

The following persons are deemed to be disqualified to enter into a valid contract:

(1) Alien Enemies. An alien is a person who is a
citizen of a foreign country and is not a subject of Republic of India. Contracts with an alien friend, subject to certain restrictions, are valid. But a contract with an alien enemy, i.e., an alien whose state is at war with India, is not enforceable at law during continuance of war. In case, a contract has been made before the war, the contract will be dissolved or shall remain suspended during the period of war. Such contracts may be permitted to be performed if they are not against public policy.

(2) Foreign Sovereign and Diplomatic Staff. Foreign sovereign and the diplomatic staff enjoy some privileges and they can not be sued in court unless a prior permission from the Central Government has been sought and such permission has been granted.

(3) Convicts or Criminals. A convict during the
course of imprisonment, is rendered incapable of entering into a contract except under a special licence, called ‘Ticket of Leave’. Such a person is again capable of entering into lawful contracts when the period of his sentence is over.

(4) Insolvents. After a person has been adjudged insolvent; it is only the official receiver or assignee who is entitled to deal with the property of the insolvent since the property vests in the official receiver or the official assignee. An insolvent is deprived of his right to contract for his property

(5) Corporations or Joint-Stock Companies. A corporation is an artificial person created by law, having a perpetual and distinct existence; apart from its members. It may come into being by a special act of legislature or by registration under the Indian Companies Act, 1956. As regards a corporation formed and registered under the provisions of Companies Act, its contractual capacity is limited by its Memorandum of Association and Articles. Any contract exceeding its expressed powers is ultra-vires and is invalid.

(6) Married women- Married women are competent to enter into contracts with respect to their separate properties (Stridhan) provided they are major and are of sound mind. They can not enter into contracts with respect to their husbands’ propeties. A married woman can, however, act as an agent of her husband and bind her husband’s property for necessaries supplied to her, if he fails to provide her with

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