Flaws in Contract Lecture - 4 of Indian Contract Act
Person is competent to contract if
He has attained the age of majority (18)
He is of sound mind,
He is not disqualified from contracting by any law to which he is subject
Minors
Lunatics
Persons disqualified from contracting by law
Yardstick to measure maturity - both should be of major and of sound mind
Law presumes that the maturity of their mind has reached to the extent of visualising the pros and cons of their acts.
Where there is consent, but it is not free, a contract is generally voidable at the option of the party whose consent is not free
Coercion
Undue influence
Misrepresentation,
Fraud
Mistake
Undue Influence section 16
Where the relations subsisting between the parties are such that one of the parties is in a position to dominate the will of the other and uses that position to obtain an unfair advantage over the other
Fraud is an untrue statement made knowingly or without belief in its truth or recklessly, carelessly, whether it be true or false with the intent to deceive
The active concealment of a fact by one having knowledge or belief of the fact;
A promise made without any intention of performing it
Any other act fitted to deceive
Any such act or omission as the law specially declares to be fraudulent
Contracts Uberrimae Fidei
Contract of insurance of all kinds
Company prospectus
Contract for the sale of land
Contracts of family arrangements
Section 23 Consideration or object of an agreement is lawful unless it is
Forbidden by law
If permitted it would defeat the provisions of law
Is fraudulent
Involves or implies injury to the person or property of another
Court regards it as immoral or opposed to public policy.