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LAWS RELATING TO CONRACTS BY MINORS BY AYUSHI GUPTA FOUNDING PARTNER – A & T LEGAL LL.B. – CLC, DU B.COM(H) – SRCC,DU
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MINOR Section 10 : Parties must be competent to contract Section 11 : Major is competent to contract Minor = Person below 18 years of age
AGREEMENT WITH OR BY A MINOR IS VOID VOID AB INITIO Mortgage executed by minor in favour of Defendant not valid as contracts with minors cannot be enforced against them MOHORI BIBI VS DHARMODAS GHOSH
MINOR CAN BE A PROMISEE OR A BENEFICIARY Can accept benefits Promissory note executed in favour of a minor. Subsequently, withdrawn on the ground that it being drawn in favour of a minor. Enfoceable as for minor’s benefit SHARAFAT ALI VS. NOOR MOHD
MINOR’S AGREEMENT CANNOT BE RATIFIED ON MAJORITY Only fresh agreement after majority A minor, speculated in stock exchange and became liable to the stockbrokers for £547. On attaining majority, Held minor was not liable to repay SMITH VS KING
NO ESTOPPEL AGAINST MINOR Will not be stopped from pleading minority as defence A minor deceived some money-lenders by lying about his age and got £ 400 and later refused to pay back. Held, where the infant has sold the goods or converted them, he cannot be made to pay LESLIE VS SHELL
NO SPECIFIC PERFORMANCE OF THE AGREEMENTS Contracts by parents/guardian having authority can be enforced if for benefit Minor son and his mother sold a piece of land to the holders of the promissory note to pay off his mortgage debt. Later minor sought recovery of land. Contract was for benefit of minor & mother had capacity to bind him. Srikakulam Subrahmanyam Vs. Kurra Sabba Rao
CANNOT ENTER INTO PARTNERSHIP Partner only in profits but not for liabilities of the firm He may be admitted only to the benefits of the firm with the consent of all other partners Section 30(1) of the Indian Partnership Act
CANNOT BE DECLARED AS AN INSOLVENT Incapable of contracting debts Not personally liable for any debt incurred during the period of his minority
MINOR’S PROPERTY LIABLE FOR NECESSARIES -Necessary support -Not sufficient supply Minor was supplied a pair of jewelled solitaires and an antique goblet. He was held not liable as the plaintiff could not prove that the articles were specially necessary for the minor Ryder Vs. Wombwell
MINOR AS AN AGENT Can serve as an agent Minor will not be personally liable for his acts as an agent. Principal will be liable to the third persons for the acts of the minor agent done in the ordinary course of dealings Section 184 of ICA