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CS Executive · Jurisprudence, Interpretation and General Laws · Contract Law

Meera, aged 17 years and of sound mind, enters into a loan agreement with a lender in India. Under the provision on who are competent to contract, which statement is correct about her competence?

Meera is not competent to contract. Section 11 requires the age of majority under the applicable law, sound mind and no legal disqualification, all together. Being of sound mind alone is insufficient, and parental knowledge or a small amount does not cure her minority.

  1. AShe is competent because she is of sound mind
  2. BShe is not competent, as a person must be of the age of majority according to the law to which she is subjectCorrect
  3. CShe is competent if her parents are aware of the agreement
  4. DShe is competent only if the amount is below one lakh rupees

Explanation

Section 11 requires a person to be of the age of majority under the law to which he is subject, of sound mind, and not disqualified by any law. Sound mind alone is not enough. Meera is a minor, so she is not competent to contract; parental awareness is not a condition mentioned in the section.

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