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.
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(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 conclude 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.