Section 506: Persons competent to concluded contract

1) Every person other than the following persons shall be competent to conclude a contract:

(a) One who is a minor,

(b) One who is of unsound mind.

Explanation:

(1) A person who is usually of unsound mind, but occasionally of sound mind, may conclude a contract when he or she is of sound mind.

(2) A person who is usually of sound mind, but occasionally of unsound mind, may not conclude a contract when he or she is of unsound mind.

2) Notwithstanding anything contained in sub-section (1), any person who is deemed incompetent to conclude a particular contract under the law shall not be deemed to be a competent to conclude such a contract.

3)  In concluding a contract on behalf of a person who is incompetent or quasi-competent, his or her guardian or curator may conclude such a contract.

4) In concluding a contract on behalf of a legal person, it shall be concluded by a decision of the director or directors authorized for the management and operation of such a person or by a person authorized by such a director or directors.

5) Notwithstanding anything contained elsewhere in this Section, if a person deemed to be incompetent to conclude a contract under this Chapter on any particular matter is competent by other law to conclude a contract on such a matter, such a person shall be deemed to be competent to conclude a contract on that matter.