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Who Are Competent to Contract in India

Who are Competent to Contract in India?

In India, the Contract Act of 1872 governs the law of contracts. According to the act, only persons who are competent to contract can enter into a legally binding agreement. But who exactly is considered competent to contract in India?

Let`s break it down:

1. Persons who have attained the age of majority: In India, the age of majority is 18 years. Any person who has attained this age is considered competent to contract. It is important to note that minors (persons under the age of 18) are not competent to enter into a contract, except in certain circumstances.

2. Persons who are of sound mind: To be competent to contract, a person must be of sound mind. This means that they must be capable of understanding the terms of the contract and its consequences. A person who is mentally unstable, under the influence of drugs or alcohol, or suffering from a mental illness, may not be considered competent to contract.

3. Persons who are not disqualified by law: There are certain persons who are disqualified by law from entering into a contract. These include insolvent persons, convicts, and foreign enemies.

4. Persons who have not been declared as insolvent: A person who has been declared as insolvent by a court of law is not competent to contract.

In addition to the above, there are certain types of contracts that require special competency. For example, a person must be a licensed professional to enter into a contract for professional services, such as a doctor or lawyer. Similarly, only a registered architect can enter into a contract for architectural services.

In conclusion, to be competent to contract in India, a person must have attained the age of majority, be of sound mind, not be disqualified by law, and not have been declared as insolvent. It is important to ensure that all parties to a contract meet these requirements to avoid any disputes or legal issues in the future.



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