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

Under the Indian Contract Act, 1872, which of the following persons is competent to contract according to Section 11?

A person is competent to contract if he has reached the age of majority under the law applicable to him, is of sound mind and is not disqualified from contracting by any law. All three conditions must be satisfied together, as Section 11 provides.

  1. AA person who is of the age of majority under the law to which he is subject, is of sound mind and is not disqualified by any lawCorrect
  2. BA person who is of sound mind, whatever his age
  3. CA person who is of the age of majority, whatever his state of mind
  4. DA person who has been given his guardian's oral permission to contract

Explanation

Section 11 requires three things together: majority according to the law to which the person is subject, sound mind, and no disqualification by any law. Sound mind alone does not make a minor competent, and majority alone does not help a person of unsound mind. Guardian permission is not a condition in Section 11.

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