The Biling Health Resort

Who Is Not Competent to Make a Contract

As a professional, I would like to shed some light on “who is not competent to make a contract.” Understanding this concept is crucial, as it plays a significant role in determining the validity of a contract. Let`s dive in.

In simple terms, competency refers to the legal capacity of a person to enter into a contract. Not everyone is qualified to do so. The following groups of people are not competent to make a contract:

1. Minors: According to the law, minors (under the age of 18 years) are considered incompetent to make a contract. The reason being, they lack the legal capacity to understand the nature and consequences of the agreement they are entering into. They are also vulnerable to exploitation, which is why the law protects them from entering into contracts.

2. Insane persons: Insane individuals are not competent to make a contract because they lack the mental capacity to understand the terms and implications of the agreement. The court may declare a person insane if they suffer from a mental illness or a disability that prevents them from making rational decisions.

3. Intoxicated persons: A person under the influence of drugs or alcohol is not competent to make a contract as their decision-making ability is impaired. Any agreement entered into while under the influence is considered voidable.

4. Persons under duress or coercion: If a person is forced or coerced into making a contract, they are not competent to do so. The agreement is not valid as it was made under duress, and the person did not voluntarily consent to it.

5. Corporations or companies without proper authorization: A corporation or company is a legal entity that can enter into a contract. However, if the person representing the company does not have the necessary authorization to enter into the agreement, it is not binding.

In conclusion, understanding who is not competent to make a contract is essential to avoid entering into an invalid agreement. It also highlights the importance of seeking legal advice before entering into any contractual arrangement.