Law on Mental Competency to Contract: An Analysis

The objective of this study is to analyze the law on mental competency to contract in Pakistan. The mental competency of the parties making a contract is essential for a valid contract. In Pakistan, the Contract Act of 1872 is the exclusive statute which deals with the contracts. The legal doctrinal analysis method was adopted to analyze the law on mental competency to contract in Pakistan. The mental competency to contract is determined based on the mental capacities of the parties to contract when making the contract. A contract with a mentally disabled person is void. The medical opinion in the form of a mental health evaluation is sine qua non to determine the mental competency of the parties to the contract. Sections 11 and 12 of the Contract Act of 1872 must be amended in the light of modern development in the fields of mental health and behavioral science.