Sunday, 31 July 2011

Capacity

Section 137 of the Contracts Act 1950 provides a requirement for a person to
become an agent. According to the provision,

"any person may become an agent, but no person who is not of the age of majority and of sound mind can become an agent, so as to be responsible to his principal."


For example, A hires B, who is 16 years old, to buy goods from C on his behalf. C supplies the goods to A through B, but B sells the goods for his benefit. A cannot deny his responsibility to C on the ground that B is a minor. A is still liable to C for the payment of the goods and A cannot claim damages from B.

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