BACHELOR OF BUSINESS ADMINISTRATION

Detailed explanation-1: -Capacity to contract means the competency to enter into a valid contract legally. The capacity to contract binds the parties of the contract with a promise to oblige by it. But only certain persons have the competency or the capacity to make a contract.

Detailed explanation-2: -What makes a contract legally binding? For a contract to be legally binding and enforceable, consideration must be exchanged. A legally enforceable contract can either be written or oral. However, depending on the nature of the transaction, some contracts might need to be written down to be enforceable.

Detailed explanation-3: -An oral contract, or verbal agreement, is when two or more parties exchange declarations of intent with such significance that they agree to be legally bound by their word. While admissible in court, oral contracts must also meet certain criteria to be legally binding.

Detailed explanation-4: -Section 11 of the Indian Contract Act, 1872, defines the capacity to contract of a person to be dependent on three aspects; attaining the age of majority, being of sound mind, and not disqualified from entering into a contract by any law that he is subject to.

Detailed explanation-5: -In practice, legal capacity ensures that a person is recognized before the law and can make decisions about his or her own life, exercise rights, access the civil and court systems, enter contracts, and speak on his or her own behalf.