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Who can enter into a contract?

A person who

  1. is of the age of majority according to the law to which he is subject
  2. is of sound mind A person is said to be of sound mind for the purpose of making a contract, if, at the time when he makes it, he is capable of understanding it and of forming a rational judgment as to its effect upon his interests.
  3. is not disqualified from contracting by any law to which he is subject

is competent to contract.

Therefore a minor is not competent to contract and an agreement by a minor is void ab initio. He can not ratify an agreement on attaining the age of majority and validate the same. (Void ab initio means it has at no time had any legal validity).

The following persons are therefore incompetent to contract

  1. Minors
  2. Persons of unsound mind
  3. Persons disqualified by law to which they are subject

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