Cantract act section 10 to 14

  Chapter 2

Of contracts,voidable contracts and void agreements


Section 10--what agreements are contract ----

All agreements are contracts if they are made by the free consent of parties competent to contract 

For a lawful consideration and with a lawful object 

And are not hereby expressly declared to be void 


Nothing herein contained shall affect any law in force in India and not hereby expressly repealed 

By which any  contract is required to  be made in writing or in the presence of witnesses or any law relating to the registration of documents 

Important point 

1.it is not sufficient to accept proposal to frame contract but it is very essential to communicate it 


2.when anyone accept the proposal and give consideration then contract has been become concluded 

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Section 11.who are competent to contract ---

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.


Important facts 

Any contract which is made with a minor such type of contact is void ab initio


Mohari Bivi versus Dharamdas ghosh 1903



Section 12.what is a sound mind  for the purposes of contracting ------

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 if forming a rational judgement as to its effect upon his interests.

A person who is usually of unsound mind but occasionally of unsound mind  may make a contract when he is of sound mind.

A person who is usually of sound mind but occasionally of unsound mind may not make a contract when he is of sound mind 

Illustrations 

A.a patient is in a lunatic asylum who is at intervals of sound mind 

May contract during those intervals

B.a sane man who is delirious from fever or who is so drunk that he cannot understand the terms of a contract or form a rational judgement as to effect on his interest 

Cannot contract whilst such delirium or 

drunkenness

Important point 

Smt.Neelima Ghosh versus harjeet kaur

The parties must be sound mind at the time of contract 

Unsound mind person cannot enter into a contract 

Unsound mindness must be exist at the time of contract and medical certificate must be available.

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Section13 consent defined 

-----two or more persons are said to consent 

When they agree upon the same thing in the same senses.

Important point 

Smith versus heyhuge 

According lord heynon both parties of contract must understand in same senses of ingredients part of contract 


Section 14 free consent defined ---consent is said to be free when it is not caused by ------

1.coercion as defined in section 15 or 

2.undue influence as defined in section 16 or 

3.fraud as defined in section 17 Or

4.misrepresehtation as defined in section 18 

5.mistake subject to the provision of sections 20,21 and 22

Consent is said to be so caused when it would not have been given but for the existence of such coercion ,undue influence,fraud , misrepresentation or mistake .

Devnand versus khotay 

The consent which has been got under coercion,undue influence,fraud , misrepresentation and mistake 

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