BACHELOR OF BUSINESS ADMINISTRATION

Detailed explanation-1: -According to Section 11, “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.”

Detailed explanation-2: -Capacity to contract means a party has the legal ability to enter into a contract. Capacity also means a person has to be competent as defined by law. Someone’s capacity is determined by whether or not they have reached the age of majority and if they are mentally capable of understanding the applicable contract terms.

Detailed explanation-3: -The law recognizes three categories of individuals who lack the capacity to contract: minors, individuals with psychological disabilities, and intoxicated persons. If anyone from these categories enters into a contract, the agreement might be considered “voidable” by them.

Detailed explanation-4: -Detailed Solution. The correct answer is B and D only. In commercial law, the ability to enter into a contract is known as contractual capacity. The capacity to contract is precisely defined in Section 11 of the Indian Contract Act of 1872.

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.