Competent to transfer the Property: Those who are competent to transfer the property as per Transfer of Property Act are described in Section 7 of the Act. It provides that every person, competent to contract and entitled to transferable property, or authorized to dispose of property not his own, is competent to transfer such property, either wholly or in part, either absolutely or conditionally.
Thus the transferor must be;
- competent to contract, and
- have the title to the property, or the authority to transfer the property not his own, in order to be a competent transferor.
- must have attained the age of majority according to the law to which he is subject. Therefore, the transfer by a minor and by a lunatic is void
Section 11 of the Indian Contract Act defines capacity to contract as follows:
- Every person is competent to contract, who is of the age of majority, according to the law to which he is subject, and, who is of sound mind and, is not disqualified from contracting by any law to which he is subject. Thus, in accordance with Indian law, a person who has completed 18 years of age can be competent to contract.
- If the transferor has no title to the property, he must have the authority to transfer. E.g. he may be an agent, acting under a power of attorney; or, the guardian of a minor duly appointed by the court: or, he may be a receiver when empowered by the court, etc.
- However, an agent, who merely manages property, has no authority to transfer it.
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