CAPACITY TO CONTRACT-BUSINESS LAW MINOR.pptx

This is a ppt about laws related to contract between persons

1. CAPACITY TO CONTRACT- MINOR By- Tisha Ahuja

2. INTRODUCTION For a valid contract parties must be competent to contract. Person incompetent to Contract:- Section 11 of Contract Act states that the following persons are disqualified by law : Minors Persons of unsound mind Persons disqualified by the law to which they are subject

3. WHO IS MINOR Indian Majority Act 1875 states that Minor is – Person i.e. male or female, Under age of 18 In case of Guardian, person is considered Minor for Age of 21 years

4. MINOR’S CONTRACT Validity The Contract with minor is considered void by law. If he has obtained any benefits he cannot be asked to pay them back. No Estoppel Estoppel means to convince someone that particular thing is fact. Later on the person (to whom we told) has no right to deny the fact.

5. MINOR’S CONTRACT Partnership Minor cannot become a partner. He can be admitted to benefits of partnership with consent of all other partners. Beneficial Agreements He has right to take the benefits of the agreement which is beneficial for him. Later on the person cannot be asked to compensate for it.

6. MINOR’S CONTRACT Minor’s Guardian Contract is declared valid when minor’s guardian enters on behalf of minor. Agent He has right to become an agent. He can enter into contract with third party.

7. MINOR’S CONTRACT Position of parents Mother/Father is not liable for decisions made by minor. Insolvent He cannot be declared insolvent because he is not competent of contact. Shareholder He can only become shareholder for fully paid up shares if articles of association permits it.

8. MINOR’S CONTRACT Adult-Minor Agreement Agreement with third party, Adult will be liable minor will not be responsible . Necessities Person who provides the necessities to minor is liable to recover from the property of minor.

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