Section 11 explained: this guide covers what it means, who it applies to, the step-by-step process, documents required, fees, due dates and penalties in India — so you can stay compliant with confidence and avoid costly mistakes.
Section 11 states three conditions a person must meet to be competent to contract: he must be of the age of majority according to the law to which he is subject, of sound mind, and not disqualified from contracting by any law to which he is subject. A person who fails these conditions is outside the section's definition of "competent", which matters because section 10 requires the parties to be competent.
"Every person is competent to contract who is of the age of majority according to the law to which he is subject, and who is of sound mind, and is not disqualified from contracting by any law to which he is subject." The section does not give the age. A footnote points to the Indian Majority Act, 1875. It also does not say what happens to an agreement with an incompetent person; that consequence has been worked out in case law, which is outside this article.
The three conditions
| Condition | Text | Where to look |
|---|---|---|
| Age of majority | "of the age of majority according to the law to which he is subject" | The footnote to the section refers to the Indian Majority Act, 1875 |
| Sound mind | "of sound mind" | Section 12 explains what sound mind means for contracting |
| Not disqualified by law | "not disqualified from contracting by any law to which he is subject" | The law that applies to the person |
If you are dealing with a minor, a person whose capacity is in doubt, or an entity whose power to contract is limited by its governing law, our legal consultation service can help you assess the position before you sign.
Condition 1: age of majority
The section says "the age of majority according to the law to which he is subject". Two things follow from the text:
- The section does not itself fix an age. It points to another law. The footnote says "See the Indian Majority Act, 1875 (9 of 1875)". That Act is not reproduced in our source, so we do not state the age here; read the Majority Act directly.
- The test is personal. The phrase "the law to which he is subject" means the relevant age depends on the person and the law applicable to him. The Act does not list those laws.
Agreements with minors
A person who is not of the age of majority fails this limb of competence. What the consequences of an agreement with a minor are, in terms of enforceability, who can sue whom, and whether money or property can be recovered, has been worked out in case law, which this article does not cover. Section 11 says only who is competent. One thing the Act does say elsewhere is that an agreement in restraint of marriage is void "other than a minor" (section 26), which shows that the Act treats minority as a separate status in some places.
Condition 2: sound mind
"Sound mind" is explained in section 12: a person is of sound mind for the purpose of making a contract if, at the time he makes it, he is capable of understanding it and of forming a rational judgment as to its effect upon his interests. Section 11 simply requires it. See our article on sections 12 and 13.
Condition 3: not disqualified by any law
The third condition is open-ended: "not disqualified from contracting by any law to which he is subject". The Act does not list the laws. It means that other statutes, or the law governing a person's status, may take away or limit the power to contract. A reader who is dealing with a company, a firm, a public body, a trust or any entity should check the law that governs that entity's power to contract, because section 11 hands that question to such laws. We do not describe those laws here.
How section 11 fits with section 10
Section 10 says agreements are contracts if made "by the free consent of parties competent to contract". Section 11 defines "competent". So an agreement with a party who fails any limb of section 11 does not satisfy section 10's test on its own words. For the full checklist, see our article on section 10.
No illustrations to section 11
The text of section 11 carries no illustrations. Section 12, which follows, does, and we restate them in our article on that section. The example below is our own.
Example (our own, not the Act's). Deepak runs an online coaching platform. A student, Arjun, signs up for a year's course by clicking "I agree". Deepak later learns Arjun has not reached the age of majority under the law that applies to him. Section 11 tells Deepak that Arjun is not competent to contract on that limb. It does not tell him what the platform can recover or must return; that is where case law and other laws come in, and he should take advice. A better practice is to have a parent or guardian join the sign-up where the user may be below the age of majority.
What can the parties change?
Nothing in section 11 lets the parties agree to treat an incompetent person as competent. Competence is set by law, not by the parties' agreement. What parties can do is verify capacity before contracting: ask for age proof, check the authority of the person signing for a company, and keep records.
Practical points
- Verify age where it matters. For long-term or high-value contracts with individuals, collect age proof.
- Check authority for entities. A person signing for a company or firm must have authority under the governing law, which section 11 leaves to those laws.
- Do not assume. The Act does not name the age, so find the applicable law.
- Take advice early. If incapacity is discovered after signing, the consequences depend on case law and the facts.
Need help with a question of capacity?
If you are unsure whether the person on the other side of a deal can validly contract, or you want your onboarding process to deal with age and authority, our legal consultation team can look at the facts and the documents and tell you where the risks lie.
Key takeaways
- A person is competent to contract if of the age of majority under the law to which he is subject, of sound mind, and not disqualified by any law to which he is subject (s.11).
- The section does not state the age; the footnote refers to the Indian Majority Act, 1875.
- Sound mind is explained in section 12.
- Consequences of agreements with incompetent persons are worked out in case law, outside this article.
Read next
- Sections 12 and 13: sound mind and meaning of consent
- Section 10: what agreements are contracts
- Introduction to the Indian Contract Act, 1872
Disclaimer: Based on the text of the Indian Contract Act, 1872 as consulted on 1 October 2026. Many questions under this Act turn on case law and on the wording of the particular contract, which this article does not cover. It is general information, not legal advice; check the official text and take advice before acting.