BACHELOR OF BUSINESS ADMINISTRATION

Detailed explanation-1: -The ability of the parties to sign a contract denotes their competence. This article discusses the fundamental elements required for someone to be qualified to establish a contract. The ability to make a legally binding agreement is known as the capacity to contract.

Detailed explanation-2: -In order for a contract to be legally binding, all of the individuals who signed the agreement must have “contractual capacity.” Contractual capacity is a legal term that refers to the minimum mental capacity required to enter into an agreement.

Detailed explanation-3: -In the context of contract law, the term “capacity” denotes a person’s ability to satisfy the elements required for someone to enter binding contracts. For example, capacity rules often require a person to have reached a minimum age and to be of sound mind.

Detailed explanation-4: -Contractual capacity is the ability of an individual to enter into a binding legal contract, and in so doing expose themselves (or their company, if they have signatory authority) to the obligations and consequences that flow from the contract.

Detailed explanation-5: -48 Moreover, a person who is usually of unsound mind may make a contract when he is of sound mind. But a person who is usually of sound mind may not make a contract when he is of unsound mind under the Indian Contract Act.