As per Indian Contract Act of 1872, a person who is not qualified to contract can`t enter into an agreement. In simple words, if a person doesn`t have the legal capacity to enter into a contract, any agreement he or she makes will have no legal effect.

For instance, a minor (i.e., a person under the age of 18 years) is not qualified to contract and is not competent to enter into any agreement. If a minor enters into a contract, it will be void and have no legal effect.

Similarly, a person suffering from unsound mind and disqualified due to any other legal reason is not competent to contract. An agreement with such a person will also be void, and no legal actions can be initiated on its basis.

The effect of any agreement made by a person not qualified to contract is that it is not legally binding. Such an agreement can`t be enforced in a court of law. Therefore, a person who enters into an agreement with an unqualified person does not have any legal remedy against such a person.

For instance, if a minor enters into an agreement to purchase a car and fails to make payment for it, the seller can`t take legal action against the minor. The seller can only recover the car from the minor`s possession as he or she has no legal authority to sell the car or enter into any agreement.

In conclusion, any agreement made by a person who is not qualified to contract is void and has no legal effect. It`s important to know the legal capacity of the person you are entering into an agreement with to ensure that the agreement is legally binding.