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मिथः समवाये च उपह्वर कृताः सिध्येयुः ॥
Agreements entered into by members of any association among themselves shall be valid though entered into in private. Such agreements (i.e., those entered into in seclusion, etc.) except as detailed above shall be void.
english translation
अतो अन्यथा न सिध्येयुः, अपाश्रयवद्भिश् च कृताः, पितृमता पुत्रेण, पित्रा पुत्रवता, निष्कुलेन भ्रात्रा, कनिष्ठेन अविभक्त अंशेन, पतिमत्या पुत्रवत्या च स्त्रिया, दास आहितकाभ्याम्, अप्राप्त अतीत व्यवहाराभ्याम्, अभिशस्त प्रव्रजित न्यङ्ग व्यसनिभिश् च, अन्यत्र निषृष्ट व्यवहारेभ्यः ॥
So also agreements entered into by dependent or unauthorised persons, such as a father's mother, a son, a father having a son, an outcast brother, the youngest brother of a family of undivided interests, a wife having her husband or son, a slave, a hired labourer, any person who is too young or too old to carry on business, a convict (abhisasta), a cripple, or an afflicted person, shall not be valid. But it would be otherwise if he were authorised.
english translation
तत्र अपि क्रुद्धेन आर्तेन मत्तेन उन्मत्तेन अवगृहीतेन वा कृता व्यवहारा न सिध्येयुः ॥
Even agreements entered into by an authorised person shall be void if he was at the time (of making the agreements) under provocation, anxiety, or intoxication, or if he was a lunatic or a haunted person.
english translation
कर्तृ कारयितृ श्रोतृऋणां पृथग् यथा उक्ता दण्डाः ॥
In all these cases, the proposer, his accessory, and witnesses shall each be punished as specified above.
english translation
स्वे स्वे तु वर्गे देशे काले च स्व करण कृताः सम्पूर्ण आचाराः शुद्ध देशा दृष्ट रूप लक्षण प्रमाण गुणाः सर्व व्यवहाराः सिध्येयुः ॥
But such agreements as are entered into in person by any one with others of his own community in suitable place and time are valid provided the circumstances, the nature, the description, and the qualities of the case are credible.
english translation