Frequently Asked Questions

How does mental deficiency affect a person's capacity to enter into a contract?

Mental deficiency can significantly impact a person's capacity to enter into a contract. This is due to the fact that mental deficiency can refer to a lack of mental maturity, as seen in minors under the age of 18 in Indian law and 21 in British law. These individuals are considered incapable of understanding the full implications of a contract, making them ineligible to enter into one. Furthermore, individuals who suffer from deficiencies from birth, referred to as “idiots” in medical terms, are listed as having a permanent incapacity. This means they are permanently unable to enter into contracts due to their mental deficiency. Similarly, persons determined to be insane can only enter into contracts during their state of sanity. If they are in a state of insanity, their status is listed as temporary incapacity, making them unable to enter into contracts during this period. In addition to these, vulnerable parties, who have difficulty understanding the content of a contract and the consequences of not meeting the terms of the contract, are also unable to enter into contracts. This category includes individuals lacking mental capacity, minors, or those with an illness.