Indian Contract Act 1872: Flaws in Capacity

Flaws in Capacity

Exception 1: Minors

1.  A minor has no capacity to contract and a minor contract is absolutely void.
2.  The Indian courts have applied this decision to those cases where minors have incurred in any liability or the liability in both sides are outstanding. But if the minor has carried out his part of the contract then he can proceed against another party.
3. A minor cannot transfer property but he can be a transferee.
4. Since the contract is 'void ab inition' , it cannot be ratified by the minor or attaining the age of maturity.
5. A minor's estate is liable to pay a reasonable price for necessories supplied to him or anyone whom the minor is bound to support.
6. A minor can be an agent but he cannot be a principle.
7. A minor can't be a partner. He can however be admitted to the benefits of partnerships.

Exception 2: Lunatic

1. A Lunatic's agreement is void but if he makes a contract when he is of sound mind, he will be bound barred by it.
2.  A same man who deteriorate from fever or who is drunk or under the influence of hypnotism is considered temporarily of unsound mind.
3. Mental decay brought by old age or disease also comes within the definition.
4.  For necessories supplied to a lunatic or to any member of his family, the lunatic's estate, if any, will be liable.

Exception 3: Alien Enemies:  

A contract with an alien enemy is unenforceable on the outbreak of war.

Exception 4: Foreign sovereigns and accredited representative of foreign states:

They can be sued in Indian courts unless they voluntarily submit to the jurisdiction of Indian courts.