An agreement becomes a contract if it is entered between the parties who are competent to contract.

Every person is competent to contract 1. Who should be major 2. Who should be of sound mind 3. Who is not to be disqualified by law.

Minor contract void in nature

A minor contract is null and void from the begnning. Neither of the parties require any rights nor can they be liable in case of contract is formed with a minor. Minor contract is invalid because a minor is not capable of taking a rational decision and also it is accepted by law, that a minor cannot judge his own interest.

Minor can be beneficiary Court protect the rights of minor. A contract is considered as void if it is entered with a minor, a minor can gain benefits under a contract.

No estoppel against minor If a minor purchase or declare or permitted another person to act upon such belief neither he or his representation shall be allowed or say it is void.

Minor as a partner in partnership firm A minor cannot come under partnership in a firm. However he can enjoy the benefits of partnership with the approval of other partners. It is advisable to avoid including a minor in a partnership.

No ratification of minors agreement A void contract that a minor entered cannot be ratified even after the reaches the age of majority.

Minors liability to pay for necessities Contract of necessities are related to every day life. Necessities are the things which is necessary for our daily life, like food, medicines, cloths, and many more things. For these necessities contracts are executed are also voidable at the time of minor.

Contract by minors guardians

The parents/guardian of a minor cannot be held liable for any agreement that the minor enters into. However they can be held liable in case the minor is acting as their agent.

Minor as insolvent A minor can never be consider as insolvent, because he is incapable to contracting debit. Even necessities supply to him, even he do any type of contract with anyone which is voidable, he is not personally liable.

Lunatic's It is a term commonly used for a person who is ill, dangerous, and incapable . These type of persons are not held capable for taking any type of responsibility, not come under any type contract, or not responsible for anything in the eyes of law.

Person with complete unsound mind A person of unsound mind is one who is incapable of understanding the true nature (value) of transaction and of forming a rational judgment as to its effect upon his interests.

Alien enemy An Alien enemy during war cannot enter into a contract with an Indian subject, unless he is permitted by central government to do so he cannot sue in Indian Courts.

Foreign Ambassador
Ambassadors and Diplomatic consuls enjoys certain privileges with the result that they cannot be proceed against in India courts. A foreign ambassador have restriction that they cannot do any contract with anyone, which is put up by the government.

Insolvent
When a person is being unable to pay his liabilities or debts, he is adjudged insolvent. Such person cannot enter into contracts relating to his property.

Convicts A person is called a convict during his period of sentence. A convict is disqualified for contracting during his time of sentence.

Drunkards person whos so drunk that he cannot understand the terms of a contract or form a rational judgment as to its effect on his interest . Such people cannot contract.