Mnemonics: Capacity to Contract

Persons NOT Competent to Contract (Section 11)

What needs to be memorized: Three categories of persons who cannot enter into a valid contract: Minors, Persons of unsound mind, Persons disqualified by law

Mnemonic: "MUD"

💡 Remember it this way: Contracts cannot be built on MUD - they need solid ground! Similarly, these three categories cannot make valid contracts.

🔗 The Breakdown:

• M → Minors (persons below 18 years)
• U → Persons of Unsound mind
• D → Persons Disqualified by law

Minor's Agreement - Key Principle

What needs to be memorized: The legal status of a minor's agreement and the landmark case

Mnemonic: "Mohori Bibee Boldly Announced: VOID from START, RATIFY is BARRED!"

💡 Remember it this way: In the famous Mohori Bibee vs Dharmodas Ghose case, the Privy Council established that a minor's agreement is void ab initio (void from the very beginning) and cannot be ratified even after attaining majority.

🔗 The Breakdown:

• Mohori Bibee → Landmark case name (Mohori Bibee vs Dharmodas Ghose)
• VOID from START → Agreement is void ab initio (not voidable)
• RATIFY is BARRED → Cannot ratify the contract after attaining majority

Unsound Mind - When Can They Contract?

What needs to be memorized: Rules about when persons of unsound mind can or cannot contract

Mnemonic: "Green Light ka Red Time = NO, Red Light ka Green Time = YES"

💡 Remember it this way: Think of traffic signals for mental state:

🔗 The Breakdown:

• Green Light ka Red Time = NO → Person who is USUALLY OF SOUND MIND (green/normal) CANNOT contract during TEMPORARY INSANITY (red time)
• Red Light ka Green Time = YES → Person who is USUALLY OF UNSOUND MIND (red/abnormal) CAN contract during LUCID INTERVALS (green time)

Extra tip: Burden of proof that person was of sound mind at time of contract lies on the person who seeks to enforce it.

Persons Disqualified by Law

What needs to be memorized: Five categories of persons who are disqualified by law from contracting: Alien enemies, Foreign sovereigns/ambassadors, Insolvents, Convicts, Companies (ultra vires acts)

Mnemonic: "AFICC" (pronounced "Ay-Fik")

💡 Remember it this way: These AFICC persons have a "fik" (problem/issue) - they cannot contract!

🔗 The Breakdown:

• A → Alien enemies (during wartime)
• F → Foreign sovereigns and ambassadors
• I → Insolvents/Bankrupts (after adjudication)
• C → Convicts (during imprisonment)
• C → Companies (for ultra vires acts - beyond their objectives)

Necessaries Supplied to Minor

What needs to be memorized: Who is liable when necessaries are supplied to a minor

Mnemonic: "Minor Nahi, PROPERTY Haan - but only for NECESSARIES!"

💡 Remember it this way: When necessaries (food, clothes, education suitable to minor's status) are supplied to a minor, the minor personally is NOT liable, but the minor's PROPERTY can be held liable - and that too only if they were genuine necessaries suitable to the minor's condition in life.

🔗 The Breakdown:

• Minor Nahi → Minor is NOT personally liable
• Property Haan → Minor's PROPERTY is liable
• Only for Necessaries → Must be necessaries suitable to minor's condition in life (not luxuries)

Extra tip: Burden of proof that goods/services were necessaries lies on the supplier.

Minor: What They CAN and CANNOT Do

What needs to be memorized: Important rules about what minors can and cannot do in contracts

Mnemonic: "Minor Can Be AGENT-BENEFICIARY, But Never PRINCIPAL-PARTY, No ESTOPPEL Ever!"

🔗 The Breakdown:

• Can Be AGENT → Minor CAN act as an agent
• Can Be BENEFICIARY → Minor CAN be a beneficiary of a contract
• Never PRINCIPAL → Minor CANNOT be a principal (even if acting through an agent)
• Never PARTY → Minor CANNOT be a party to a valid contract
• No ESTOPPEL → Doctrine of estoppel does NOT apply to minors (they can always plead minority)

Section 11 - Full Text Memory Aid

What needs to be memorized: The complete provision of Section 11 about competency to contract

Mnemonic: "Every SANE ADULT who is NOT BARRED by law"

💡 Remember it this way: Section 11 states that every person is competent to contract who:

🔗 The Breakdown:

• ADULT → Is of the age of majority (has attained 18 years)
• SANE → Is of sound mind
• NOT BARRED → Is not disqualified from contracting by any law

Note: This is the positive way to remember capacity - the MUD mnemonic gives you the negative (who CANNOT contract).