Beruflich Dokumente
Kultur Dokumente
Business Law
Session-2
1
CAPACITY OF PARTIES
Meaning:
Capacity
to
contract
means
competence of parties to enter into a valid
contract. Sec. 11
Sec.10 requires parties to be competent to
contract.
Sec.11 lays down that: every person is competent
to contract who is of:
Convict
Corporation
Insolvent
Enemy
Sr.
No.
Type of Unsoundness
1.
Lunatic:
person
who
is
mentally deranged due to
some mental strain or other
personal experience but who
has some lucid intervals of
sound mind.
2.
Effect on Contract
Idiot:
a
person
who
is He can
permanently of unsound mind. contract
not
enter
into
any
7
Sr. No.
3.
Type of Unsoundness
Effect on Contract
CONTRACTS BY A MINOR
Who is minor?
Sec.3 of Indian Majority Act, 1875
deems person as Major
Category
Age of majority
On completion of 18 Years.
Two
10
The
FREE CONSENT
12
Undue
Influence
Coercion
No Free
Consent,
If caused by
Mistake
Fraud
Misrepresent
ation
13
COERCION
14
Sec.15:
15
16
UNDUE INFLUENCE
17
18
In
following
relationship
Undue
Influence is not presumed.
1. Land lord and Tenant
2. Creditor and Debtor
3. Husband and Wife
. Burden of Proof: the burden of proof
that the contract was not induced by
Undue Influence lies on party who was
in dominant position.
20
21
FRAUD
22
23
For fraud to exist, there must be1. A representation, and it must be false.
2. The representation must relate to fact.
3. The representation must have deceived
the other party.
4. The other party who has been deceived
must suffer some loss. As such fraud
without damage or damage without
fraud does not give rise to an action.
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25
26
MISREPRESENTATION
27
28
29
30
MISTAKE
31
Mistake of Law
Mistake of Fact
Indian Law
Valid
Foreign Law
Unilateral
Void
Bilateral
Void
Valid
32
34
Thank You.
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