CHAPTER NO.4 (CAPACITY OF PARTY)

BUSINESS LAW
(KHALID MAHMOOD CHEEMA)

CHAPTER NO.4 (CAPACITY OF PARTY)


The contracting parties must be competent to contract .Every person is competent to contract who is of the age of the majority according to the law to which he is subject, and who is of sound mind, and is not disqualified from contracting by any law to which he is subject .
Section 11 "The following persons are incompetent to contract .
1 Minor
2) Persons of unsound mind
3)Persons disqualified by law.
Age of majority
Nature of minor's agreement
1) void agreement
2) minor and ratification
3) Minor and ectoppel
4)Minor and Repayment
5) Minor and necessaries
6)Agreement by guardian on behalf of minor
7)Minor can bea promisee or beneficiary
8) Minor as aagent
9)Minor as a partner
10)Surety for a Minor
11)Minor as a member of a company
12)Minor and insolvvency
13) Contract by Minor and adult jointly
14) Position of Minor 's parents
15) Minor and negotiable instruments


( see page no. 43-48 of book with example)

Persons of unsound mind
sound mind
CUASES OF UNSOUND MIND
EFFECT ON AGREEMENT
BURDEN OF PROOF

( see page no. 48 TO 49 of book with example)

Disqualified Persons


1) Joint stock company
2)Diplomatic agent
3)Alien Enemies
4) Insolvent
5)Convict

( see page no. 49 to51 of book with example)