Following persons are disqualified from contracting: (Sec. 11).
1. Joint Stock Company
Joint stock company cannot enter into contract outside the powers giver, to it by its Memorandum of Association or by the provisions of the Companies Ordinance.
Example
X, Y and C makes an agreement with A to sell some property which the company is not authorized by it memorandum of association, an agreement is void.
2. Diplomatic Agent
The diplomatic agent means the staff of the diplomatic mission of a foreign country in Pakistan
Any private immovable property situated in Pakistan
If he acts as an executor, administrator and heir as a private person.
Any professional or commercial activity exercised outside his official functions.
Example
E, a diplomat got a house on rent from M on behalf of the state to which be belongs to. M sued for recovery of arrears of rent. It was held no action could be brought against him. (Engelke vs. Musman).
3. Alien Enemy
An alien means citizen of a foreign country. An alien whose country is at peace with Pakistan Pakistan
Example
Y contracts to buy goods from X, a citizen of India
4. Insolvent
An insolvent cannot enter into a contract with anyone regarding his property which is in the control of official receiver. After the order of discharge, he can enter into a contract.
Example
A, an insolvent, promises to sell his car to B. The agreement is void.
5. Convict
A convict is a person who has been imprisoned by a court of law. During the period of sentence, he is incapable of entering into contract. However, he can enter into a contract while on parole or through commission. He becomes capable of making a contract when the sentence of imprisonment expires.
Example
W during imprisonment enters into an agreement with S to sell his land. The agreement is void.
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