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A person may be disqualified from entering into a valid contract under Indian law if they fall into one of the following categories: 1) A corporation can be disqualified if it exceeds the powers derived from its memorandum of association, making any contract ultra vires and void. 2) During times of war, alien enemies cannot contract with Indian subjects or sue in Indian courts, and pre-war contracts may be suspended if they benefit the enemy. 3) Convicts undergoing imprisonment are incapable of entering valid contracts until pardoned or their sentence ends. 4) Insolvents' property vests with an official receiver, so the insolvent can only enter contracts through the representative and on behalf of

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93 views1 page

Document 1

A person may be disqualified from entering into a valid contract under Indian law if they fall into one of the following categories: 1) A corporation can be disqualified if it exceeds the powers derived from its memorandum of association, making any contract ultra vires and void. 2) During times of war, alien enemies cannot contract with Indian subjects or sue in Indian courts, and pre-war contracts may be suspended if they benefit the enemy. 3) Convicts undergoing imprisonment are incapable of entering valid contracts until pardoned or their sentence ends. 4) Insolvents' property vests with an official receiver, so the insolvent can only enter contracts through the representative and on behalf of

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sai5charan5bavanasi
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© © All Rights Reserved
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Q. PERSON DISQUALIFIED BY LAW?

{ SMART WORD:

ANS: INTRODUCTION : The third class of persons, under sec(11) of the Indian contract act, 1872, who
are not competent at law to enter into a valid contract, are those who are disqualified from
contracting by any law, to which they are subject. Let us discuss:

 Body of corporate /company:


A corporation may be defined as an artificial person, created by law, having a legal
existence apart from its members and capable of suing and of being sued.
It may come under into existence by a special act of legislature or by registration
under the company’s act,1956. When the corporation has come into existence by
virtue of special act then its contractual capacity their contractual capacity is governed
by their memorandum of association. If the corporation exceeds its power derived
from its objects, the contract is ultra virus of the company and hence void.

 AGREEMENTS WITH ALIEN ENEMIES;


An alien means a foreigners i.e., a citizen of a foreign state. He may be an alien friend
or an alien enemy. Contracts with alien friends are valid subject to certain restrictions.
In case of alien enemies the contracts can be of contracts during the war and contracts
before the war.
During the continuance of the war, an alien enemy can neither contract with
Indian subject nor can he sue in an Indian court. Contracts made before the war may
be suspended or dissolved if they are against the public policy, or if it is benefiting the
enemy.

 CONTRACTS BY CONVICTS :
A convict when under going imprisonment is incapable of entering into a contract.
This incapacity come to an end when he is pardoned or the period of the sentence comes to
an end.

 CONTRACTS BY INSOLVENTS:
When a debtor is adjudged insolvent, his property vests in the official receiver or
official assignee. Hence, the insolvent can enter into contracts can sue and be sued on
behalf of the insolvent.

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