CAPACITY OF PARTIES & FREE CONSENT

Parties to Contract should be Major

Minors contract void in nature Mohribibi v/s Dharmodas Ghosh Minor can be beneficiary Minor as partner in partnership firm No estoppel against minor No Ratification of minors agreement Minors liability to pay for necessities Contracts by minors guardian Minor as insolvent

Person should be of Sound Mind

Luncatics Persons with complete unsound mind

Person not to be Disqualified by Law

Alien Enemy Foreign Ambassadors Insolvent Convicts Drunkards

Free Consent
Under Sec 13 of The Indian Contract Act, Two persons are said to have consented whey they agree upon the same thing in the same sense.

Elements of Free Consent

Mistake Misrepresentation Fraud Undue Influence Coercion

Mistake
Under Sec 26 of Indian Contract Act A legal mistake means an erroneous belief about something Mistake of Law Mistake of Fact Unilateral, Bilateral

Misrepresentation
Under Sec 18 of Indian Contract Act conditions 1. One person makes a statement to the other person to invite him to enter into contract 2. The maker of the statement makes statement in genuine or honest belief 3. The statement is made on basis of incomplete information - Voidable

Fraud
Under Sec 17 of Indian Contract Act There is always presence of intention to deceive or cheat the other person False Suggestions Mere silence as to fact does not amount to fraud

Undue Influence
It involves element of mental pressure. When a person has authority over the other person Fiduciary Relationship Sickness, Minority, Old Age, etc

Coercion
Under Sec 15 of Indian Contract Act When one person commits or threatens to commit any act which is punishable as an offence under the provisions of Indian Penal Code, in order to obtain consent of other person to enter into contract. By giving such consent the other person is bound to suffer loss.