Section 239 The Indian Contract Act, 1872
📜 Section 239 – The Indian Contract Act, 1872
Agency cannot be created by a person who is of unsound mind
"A person of unsound mind cannot appoint an agent."
✅ Explanation:
To create an agency relationship, the principal must be capable of contracting.
If a person is of unsound mind (mentally incapacitated), they cannot appoint an agent because:
They lack the capacity to enter into a valid contract.
Hence, any purported agency created by such a person is void.
🧾 Example:
If a person suffering from mental incapacity tries to appoint someone as his agent to manage his business, the appointment is not legally valid.
🔍 Key Points:
| Aspect | Detail |
|---|---|
| Principal's capacity | Must be of sound mind to appoint agent |
| Effect of unsound mind | Agency created is void |
| Reason | Contracts by unsound mind persons are void |
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