THE LEGAL WATCH
Trusted Contract Advisory
TLW - Contract Awareness Initiative
TLW - Legal Awareness Initiative
A person who is major by age, who is of sound mind and who is not barred/disqualified from any law to get into the contract is competent to contract.
Under the Indian Contract Act 1872, the parties competent to contract are a person who has attained age of majority ie 18 years and in case of minors if they are represented by guardian then minors can enter into a contract. A person of sound mind and not disqualified by law can enter into contract. A person who is usually of unsound mind, but occasionally of sound mind, can make a contract when he is of sound mind.
According to Section 11 of Indian Contract Act 1972 the party in competent to contract is minor
Every person is competent to contract who is of age of majority according to the law to which he subject, who is of sound mind and not is disqualified from contacting by any law which is subject. Any person of unsound mind or a lunatic or an idiot for drunken and intoxicated person is incompetent to contract alien enemy, foreign sovereign Convict, corporation and insolvent company are incompetent to contract
A person of sound mind(able to understand the facts and forming a rational judgement and take decisions according to his own consent), who has attained the age of majority(in India, 18yrs is considered to be the age of majority), and who is not disqualified for contracting by any law which has authority over him(for eg. Indian law have authority over people living in India)