Parties' Capacity in Commerce Quiz

Capacity of parties refers to the legal ability of individuals to enter into a contract. It involves determining who is competent to contract, including considerations such as minority, unsound mind, and disqualification by law.

Competency is crucial in forming a contract as not all agreements can be termed as contracts. For an agreement to become a contract, it must fulfill certain requirements, with competency being one of the key requirements.

In the context of contracts, a minor refers to a person who has not attained the age of majority as defined by the law. Minors have certain limitations in entering into contracts.

<p>Agreements with minors are generally voidable at the option of the minor. However, there are exceptions such as for necessaries and certain beneficial contracts.</p> Signup and view all the answers

<p>Disqualification by law can arise from factors such as conviction of certain offenses or being of unsound mind, which may render an individual legally incapable of entering into a contract.</p> Signup and view all the answers