Multiple choice

The following persons can enter into contracts as per the provisions of The Indian Contract Act, 1872:

  1. alien enemy

  2. foreign sovereigns or accredited representatives of a foreign state

  3. insolvents and convicts

  4. none of these
Reveal answer Fill a bubble to check yourself
D Correct answer
Explanation

The Indian Contract Act places restrictions on certain parties' capacity to contract. Alien enemies (during war), foreign sovereigns/representatives (may have diplomatic immunity), and insolvents/convicts (legal disabilities) all face limitations on their contractual capacity. Therefore, none of these groups has unfettered contractual rights.

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