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CMA Foundation · Fundamentals of Business Laws and Business Communication · Capacity of Parties, Free Consent

Section 11 of the Indian Contract Act, 1872 makes a person competent to contract if he satisfies which set of conditions?

Every person is competent to contract who has reached the age of majority under the law to which he is subject, is of sound mind, and is not disqualified from contracting by any law to which he is subject.

  1. AAge of majority under the law he is subject to, sound mind, and not disqualified by any law to which he is subjectCorrect
  2. BAge of majority, sound mind, and holding property worth the contract value
  3. CSound mind and being a citizen of India, whatever his age
  4. DAge of majority and being a literate person, even if of unsound mind

Explanation

Competence requires three conditions: majority under the law he is subject to, sound mind, and no disqualification by any law applicable to him. Property or citizenship is not required. The other options add conditions not in the Act or drop required ones.

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