Sunday, 18 March 2012


It refers to statutory disqualification imposed on certain person in respect of their capacity to contract.

1. Alien enemies.
           An alien is competent to contract with citizens of the indian living in India. He can maintain as action on a contract enter onto by him during peace him time. But if a war is declared, an alien enemy cannot enter into a contract with the Indian citizen. Contract entered into before the declaration of war are either stayed or terminated but contract into during the war are unenforceable.

2. Foreign sovereigns and ambassadors.
           These person are immune from the jurisdiction of local courts, unless they voluntarily submit to its jurisdiction. These persons have a right to contract but can claim the privilege of not being sued. The rules regarding suits by or against foreign sovereigns are laid down in section 84 to 87 of Civil Procedure Code.

3. Insolvent.
           An insolvent cannot enter into a contract as his property vests in the official receiver or official assignee. This disqualification of an insolvent is removed after he is discharged.

4. Convict.
           A convict while undergoing imprisonment in incapable of entering into a contract. But this disability comes to an end on the expiry of the sentence.

5. Corporations.
           A Corporation is an artificial person recognised by law. It exists only in the eyes of law. It is competent to enter into a contract only through its agent.

6. Married women.
           A women is competent to enter into a contract. Marriage does not affect the contractual capacity of a women. She can even bind her husband in cases of pressing necessity. A married woman may sue or be sued in her own name in respect of her separate property.

7. Professional persons.
           Doctors and advocates are included in the class. In england barristers are prohibited by the etiquettes of their profession from suing for their fees.


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