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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