Section 11 Contract Act: Who are competent to contract

Section 11 of Indian Contract Act: Who are competent to contract

Official Bare Act Text

Override / Mandate Mens Rea (Intent) Actus Reus (Conduct) Punishment Limitation Monetary

Every person is competent to contract who is of the age of majority according to the law to which he is subject, and who is of sound mind and is not disqualified from contracting by any law to which he is subject.

Statutory Defined Terms in this Section: (Click any term for official legal definition)

Contract Sec 2(h)

Legal Commentary & Landmark Judgments: Section 11

Section 11 of the Indian Contract Act, 1872 defines who is legally competent to enter into a contract, mandating majority, soundness of mind, and absence of legal disqualification.

Statutory Competence Criteria: Under Section 11, every person is competent to contract who has attained the age of majority under their governing law, is of sound mind, and is not disqualified from contracting by any applicable statute.
Void Ab Initio Effect: Agreements entered into by persons lacking contractual capacity (such as minors) are void ab initio and unenforceable from inception (Mohori Bibee v. Dharmodas Ghose).

Key Landmark Precedents:

Mohori Bibee v. Dharmodas Ghose (1903) 30 IA 114 (PC): The Privy Council authoritatively held that a contract made by an infant/minor is absolutely void ab initio. The doctrine of estoppel cannot be applied against a minor to validate a void agreement.
Mathai Mathai v. Joseph Mary (2015) 5 SCC 622: The Supreme Court reaffirmed that a mortgage or conveyance executed by a minor is non-est in the eye of the law. While a minor can be a beneficiary or transferee under property law, they cannot undertake personal contractual liabilities.

Legal Commentary:

Under Indian law, a minor's agreement cannot be ratified upon attaining majority because a void transaction cannot be validated retrospectively. Furthermore, restitution against a minor under Section 65 is unavailable, although the court may grant discretionary equitable restitution under Section 33 of the Specific Relief Act, 1963 to prevent unjust enrichment if the minor fraudulently misrepresented their age.

Section 11: Who are competent to contract

Section 11 of Indian Contract Act: Who are competent to contract

Legal Commentary & Landmark Judgments: Section 11