Competency to contract

Now let us see whether any person can enter into a contract or more clearly “who is competent to contract”?     Any person, who is “major” according to law, can do so. Usually the age of majority is 18 years of age. But if a Guardian is appointed for a child by the court, then for that child, the age of majority is 21 years. These are given in The Indian Majority Act.

Any major person of sound mind who is not specifically disqualified from contracting by any law is competent to contract.

A child (minor) cannot enter into a contract. But nothing prohibits a child from becoming the beneficiary under a contract. Obviously a child cannot propose for life insurance. But a child can be a beneficiary under a life insurance contract. Other than age there are many other factors that go to make a contract a valid one.

Key words:

Competent to contract
Major
Minor
Indian Majority Act