According to section 183 of ICA 1872, Principal must be competent for contract of agency.... So, Why there is incompetent principal??? Will anyone know about this clear my query.... please

Shri · 21 Sept 2026

Anyways again Thank you....

Simranpreet · 21 Sept 2026

And by the way, just saying but you gotta just yk accept whatevers written in there. These laws aren't really that important for us. Inter wale jyada kaam ayenge and we can't even study the full scope of these laws yet (contract sales wagera wale). And there are a lot of stupid references, repititions and yeah contradictions but that's just law. It's written and ya have to learn it. No other way around. So we can like try to yk make sense with them but it doesn't work everytime so just learn it, twin.

Shri · 21 Sept 2026

Okay....Thank you

Simranpreet · 21 Sept 2026

Once again, I said that here incompetent also means dead. So what if the principal makes a contract, later the principal dies and the agent performs something. So here, they can't hold the principle liable na. He's dead. That's why they saying. Ofc that's another thing if the principal died and the agent wasn't aware

Simranpreet · 21 Sept 2026

Once again, I said that here incompetent also means dead. So what if the principal makes a contract, later the principal dies and the agent performs something. So here, they can't hold the principle liable na. He's dead. That's why they saying. Ofc that's another thing if the principal died and the agent wasn't aware

Simranpreet · 21 Sept 2026

And there was a funny case. I kinda forgot but it was related to joint company or smthn. So an uncle started a company where 5℅ shares belonged to him and 95% to his son/nephew (who was a minor). He incurred a huge loss and when the other company asked for payment, he said that he was only liable to pay 5℅. Now the third party would be stuck cuz they can't demand payment or ask a minor to fulfill their side of the deal. As much as this sounds like a good idea, the decision in the court wasn't in the uncles favor so well nice try.

Shri · 21 Sept 2026

If principal is minor then How contract of agency is valid contract??? Because valid contract of agency there must be competent principal.....

Simranpreet · 21 Sept 2026

Also incompetent here also refers to if the principal is dead

Simranpreet · 21 Sept 2026

Hey, so I'm not an expert either but my understanding of this is as follows: If they don't mention that "if the principal is incompetent (mentally unstable, minor etc) then the agent will be liable) then people could simply take their minor nephews or kids, deal in business, refuse to pay anything and when asked will simply say "I'm just an agent. Deal with the principal" Now the other party will be at loss because they can't sue an incompetent person and neither the agent.