Professional Documents
Culture Documents
Persons
PUTTU GURU PRASAD
INC GUNTUR
Validity of Contracts
Competency of persons
Major ( Indian majority Act-1875- 18 Yrs
other law may be 21 yrs – Guardians and
Wards Act,1890
Mohiri bibi V Dharmodas Ghosh
Raj Rani V Prem Adibm ( Film Producer)
Sound Mind- Idiot-Lunatic- Drunkard
Persons disqualified by Law
Not to be declared to be insolvent by any
law within the subject matter of law, alien
enemy, Convict
Effects of Minors
Contracts
Void abinitio
No Estoppel (The Indian Evidence Act, 1872)
Application of Doctrine of Restitution
(Principle of Traceability)
No Ratification
No Liability for contracts as well as torts
Beneficial contract ----Minor liable
Marriage Contract
Contract of service and apprenticeship
( Apprenticeship Act 1850)
Parents and Guardian liable only if the
minor acts as an agent
Continued………
Surety ( Liable)
Minor as an agent ( Not liable) but
can bind the others ( principal)
Specific performance of Contract
Can make other’s liable for the
negotiable instrument (can endorse,
draw, deliver, negotiate)
Cannot be declared insolvent
Cannot be shareholder of a company
Cannot enter as a partner under the
Partnership Act,1932
Persons of Unsound Mind
Can be permanent and temporary
Idiot –Lunatics ( permanent) Void
But can make contract during the
lucid intervals
Drunkard ( voidable)
Disqualification Under
the Law
Alien enemy
Convict
Insolvency- inability to discharge his
liabiltiy
Applies to the court either by himself
or by his creditors
Can enter into contract if the “ Order
of discharge” has been made by the
court
Consideration
Ex nudo pacto non oritur actio
(An agreement made without consideration
is void)
Consideration is price paid for a
promise
Consideration can be :
Past
Present ( Executed)
Future (Executory)
Exceptions to the Rule
Love and affection (Rajlukhy V
Bhootnath)
Voluntary Services (Upton Rural
District council case)
Time barred debt (Tulsi Ram case)
Gift
Agency
Charitable subscriptions
Unlawful object and
Consideration
Sec 23- talks about the illegality of
object and consideration
Forbidden by law
Immoral
Against Public Policy-
What is public policy?
1.Interference with the court of justice,
2.Agreement in restraint of
prosecution,
3.Agreement of Maintenance and
champerty
(Valid in India except – when it is unreasonable or
unjust
to other party- or when it is made with a
malicious
intention)
4.Marriage brokerage contract
5.Unfair and unreasonable dealings