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Rules Relating To An Agreement With A Minor-Law Of Contract

   Posted On :  07.05.2018 09:39 pm

Rules Relating To An Agreement With A Minor-Law Of Contract

Rules Relating To An Agreement With A Minor
 
Agreement is void ab initio : According to Sec. 10, an agreement made by a person incompetent to contract is void. Hence an agreement made by a minor is void. The agreement is void ab initio i.e. Void from the very beginning.However, Sec. 68 of the Contract Act lays down “if a person, incapable of entering into a contract or any one whom he is legally bound to support, is supplied by another person with necessaries suited to his condition in life, the person who has furnished such supplies is entitled to be reimbursed from the property of such incapable person.
Minor can be a promisee: An agreement is void as against a minor but a minor can derive benefit under a contract. The privilege of minority is available to the minor only. Other person cannot avoid the contract because the promisee is a minor. Thus the minor can enforce the agreement against the other party.
A Minor’s Agreement cannot be ratified : Since an agreement with a minor is void ab initio, i.e. It does not exist in the eyes of law, it cannot be ratified by a minor after completing the age of majority.
No Compensation is payable by a minor: Though an agreement with a minor is void, the minor would not be called upon to refund any benefit which he has received, under such an agreement (i.e. Sec. 64 and Sec. 65 would not apply to a minor).
The rule of estoppel does not apply to a minor i.e. A minor can misrepresent his age and enter into an agreement and can still plead infancy to avoid that agreement.
No recovering back the money paid: Where an infant has paid money under a void or voidable contract he cannot recover it, unless there has been a total failure of consideration.
A minor can be sued in tort. If what the infant has done lies right outside the terms of the contract, the infant can be made liable.
Agency. A minor acting as an agent cannot be held liable even for those acts for which other agents would incur personal liability.
Negotiable Instrument: A minor can also make and deliver negotiable instruments and can negotiate them making all other persons except himself liable on them.
Partnership: An agreement with a minor is void. But a minor can be admitted into the benefits of partnership with the consent of all the partners (Partnership Act). This means that the losses of the firm can be recovered only from his share in the firm but unlike other partners his personal property would not be liable for firm’s losses.
Insolvency: A minor cannot be adjudicated insolvent.
Joint Agreement: Where a minor and another person make a joint promise, the promisee cannot enforce the agreement against the minor but he can enforce it against the other person.
Guardianship: Though an agreement made by a minor is void but an agreement made by the guardian of a minor is binding on the minor if it is for the benefit of the minor.
Minor’s Parents: Agreements made by a minor are not enforceable against his parents, even through they are for the necessaries supplied to the minor.
Tags : Business Environment and Law-Law Of Contract (Indian Contract Act 1872)
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