5 Questions
Explain the concept of 'Capacity of Parties' in the context of contracts in India.
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.
What is the significance of competency in forming a contract in India?
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.
Who is considered a 'minor' in the context of contracts?
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.
What is the position of agreements with a minor in contract law?
Agreements with minors are generally voidable at the option of the minor. However, there are exceptions such as for necessaries and certain beneficial contracts.
What are the factors that may lead to disqualification by law for entering into a contract?
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.
Test your knowledge on the capacity of parties in commerce with this quiz. Explore concepts such as who is competent to contract, the definition of a minor, and more. Enhance your understanding of the legal aspects of parties' capacity in commercial transactions.
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