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Capacity to Contract

According to section 10 of Indian contract Act, 1872, one of the essentials of a valid contract is that the parties to the contract must be competent to contract.

According to section 11, “every person is competent to contract who is of the age of majority according to the law to which he is a subject and who is of sound mind, and is not disqualified from contracting by any law to which he is subject.”

An agreement by or with a party, not competent to contract, is void.


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