Parties to the contract should be capable of entering in to contract, only then they can lay the foundation of a valid contract. Competence to contract is dealt by S. 11.

S.11. “Every person is competent to contract who is of 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.”

Thus a person is not competent to contract if:

(a) He has not attained the age of majority;


(b) He is of unsound mind;

(c) He has been disqualified from contracting by some law.