Question

A contract entered with foreign sovereigns and Ambassadors cannot be enforced against them in court of law except _________.

• A. with the permission of court
• B. with the permission of Central Government
• C. by an act of Parliament
• D. with the approval of President of India.

Answer 1

The correct option is B with the permission of Central Government

The persons who disqualified from entering into a contract due to certain reasons may arise from their legal status, political status or corporate status:

• Alien Enemy: An agreement with an Alien Enemy is held to be void.
  
• Foreign Sovereign and Ambassadors: Foreign sovereigns and their representatives enjoy certain amount of privileges and immunities in every country. They cannot enter into a contract except through their agents residing in India. Moreover, the contract with them can be enforced in the court only with the permission of Central Government.
  
• Convicts: A convict while he is undergoing imprisonment, cannot enter into a contract.
  
• Insolvents: An insolvent person is a person who is said to be unable to discharge or get off his liabilities and therefore, has applied for being adjudged insolvent or if such proceedings have been initiated by any one of his creditors.
  
• Company or Statutory bodies: A contract entered into by a corporate body or statutory body will be valid only to the extent it is within its Memorandum of Association