Category: Indian Contract Act

Under Section 11 of the Indian Contract Act, certain persons are deemed incompetent to contract, including minors, individuals of unsound mind, and others disqualified by law. This article delves into the legal framework, consequences of such contracts, and relevant case laws.

Section 12 of the Indian Contract Act defines a person of sound mind as someone capable of understanding a contract and forming rational judgment. This article explains how unsoundness affects contractual capacity, the concept of lucid intervals, and the burden of proof when mental capacity is questioned.

An agreement with a minor is void ab initio under Indian Contract Law. This article discusses the legal position of minors in contracts, key case laws like Mohori Bibi v. Dharmodas Ghose, and exceptions where a minor can benefit, but not be held liable under a contract.

Consideration is the foundation of every valid contract. Section 2(d) of the Indian Contract Act defines consideration and its essential elements. This article explores past, present, and future consideration, lawful consideration, and exceptions where an agreement is valid even without consideration.

Section 2(b) of the Indian Contract Act defines acceptance as the expression of assent to an offer. This article outlines the rules of valid acceptance, including communication, timing, and revocation. It also highlights the legal impact of acceptance in forming a binding contract.