Who is competent to contract?

Are you planning to make a contract with a legal person? This will be a guideline for you. Sometimes people misunderstand the competency of a legal person and enter into a contract! This will results in serious injury to their business as well as to their money also.


Competency is a status which is to be observed strictly while making a contract. There are some points which makes a legal person a Competent. According to contract laws; a person is competent if he is major, sane, possessing an absolute title and his property not under any kind of legal bar.


Once you have observed these points before making an offer or acceptance you will be safe. Law helps the vigilant not the indolent. Contractual liabilities starts from competency to the fulfillment of the same. Here is another important topic Status of an agreement. This will make you clear about your rights in a breach of contract.

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Status of an Agreement

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 Agreement: There must be a promisor and a promisee. They must be competent to contract. They made an offer and expectance to do or not to do some legal act for some consideration. This will be called as an Agreement. Status of an agreemen t: "Agreement creates no title" Agreement is just a promise to do or not to do some act. That act may be legal or sometimes illegal. That's why law has put a check on agreement for its enforceability. When all the requirements of an agreement are fulfilled it become a Contract. Moreover, an Agreement which is enforceable at law is a Contract. Agreement creates no title but gives you a right to get it enforced. You have to file a suit in the competent court. That suit will be against the party who has done a breach of contract.
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