Table of Contents
Introduction
Every person residing in India shall attain the age of majority on the completion of 18 years of age and not before. The age of majority being 18 years, a person less than that age even by a day would be minor for the purpose of contracting.
There are some Laws relating to Minor’s Agreement which are as follows: –
A contract made with or by a minor is void ab-initio
A minor is not capable to contract and any agreement with or by a minor is void from the very beginning. It is specially provided in Section 10 that a person who is incompetent to contract cannot make a contract within the meaning of the Act
No ratification after attaining a majority
A minor cannot ratify the agreement on attaining the age of majority as the original agreement is void ab initio and a void agreement can never be ratified
Example
A, a minor makes a promissory note in the name of B. On attaining majority, he cannot ratify it and if he makes a new promissory note in place of the old one, the new promissory note that he executed after attaining majority is also void being without consideration
Minor can be a beneficiary or can take benefit out of a contract
Though a minor is not competent to contract, nothing in the Contract Act prevents the minor from making the other party bound to him. Thus, a promissory note duly executed in favor of a minor is not void and can be sued upon by him, because he though incompetent to contract, may yet accept a benefit.
A minor cannot become a partner in a partnership firm. However, he may with the consent of all the partners, be admitted to the benefits of a partnership (Section 30 of the Indian Partnership Act, 1932).
Example
Z mortgage was executed in favor of a minor. Held, he can get a decree for the enforcement of the mortgage.
A minor can always plead minority
A minor can always plead minority and is not stopped to do so even if he has taken any loan or entered into any contract by falsely representing that he was a major. The rule of estoppel cannot be applied against a minor. It means he can be allowed to plea his minority in defense.
Example
Z, a minor has falsely induced himself as a major and contracted with Mr. D for a loan of `20,000. When Mr.D asked for the repayment A denied to pay. He pleaded that he was a minor and cannot enter into any contract.
Held, A cannot be held liable for repayment of the amount. However, if he has not spent the same, he may be asked to repay it but the minor shall not be liable for any amount which he has already spent even though he received the same by fraud.
Thus, a minor can always plead minority and is not estopped from doing so even where he had produced a loan or entered into some other contract by falsely representing that he was of full age when in reality he was a minor
Liability for necessaries
The case of necessaries supplied to a minor or to any other person whom the such minor is legally bound to support is governed by section 68 of the Indian Contract Act. A claim for necessaries supplied to a minor is enforceable by law. But a minor is not liable for any price that he may promise and never for more than the value of the necessaries.
There is no personal liability of the minor, but only his property is liable.
Contract by guardian
Though a minor’s agreement is void, his guardian can, under certain circumstances enter into a valid contract on the minor’s behalf. Where the guardian makes a contract for the minor, which is within his competence and which is for the benefit of the minor, there will be a valid contract that the minor can enforce. But all contracts made by guardians on behalf of a minor are not valid.
Example
The guardian of a minor has no power to bind the minor by contract for the purchase of immovable Property. But a contract entered into by a certified guardian (appointed by the Court) of a minor, with the sanction of the court for the sale of the minor’s property, may be enforced by either party to the contract.
No specific performance
A minor’s agreement being absolutely void, there can be no question of the specific performance of such an agreement.
No insolvency
A minor cannot be declared insolvent as he is incapable of contracting debts and dues are payable from the personal properties of the minor and he shall never be held personally liable.
Partnership
A minor being incompetent to contract cannot be a partner in a partnership firm, but under Section 30 of the Indian Partnership Act, he can be admitted to the benefits of a partnership
Minor can be an agent
A minor can act as an agent. But he will not be liable to his principal for his acts. A minor can draw, deliver and endorse negotiable instruments without himself being liable.
Example
A minor can have an account in the bank. He can draw a cheque for his purchases. But he shall not be liable for cheque bounces nor can he be sued under the court of law for any fraud done from his account.
Minor cannot bind parent or guardian
In the absence of authority, express or implied, an infant is not capable of binding his parent or guardian, even for necessaries. The parents will be held liable only when the child is acting as an agent for the parents.
Example
Richa a minor entered into a contract of buying a scooter from the dealer and mentioned that her parents will be liable for the payment of the scooter. The dealer sent a letter to her parents for money. The parents will not be liable for such payment as the contract was entered by a minor in their absence and out of their knowledge.
Joint contract by minor and adult
In such a case, the adult will be liable on the contract and not the minor. In Sain Das vs. Ram Chand, where there was a joint purchase by two purchasers, one of them was a minor, it was held that the vendor could enforce the contract against the major purchaser and not the minor.
Surety for a minor
In a contract of guarantee when an adult stands surety for a minor then he (adult) is liable to the third party as there is a direct contract between the surety and the third party.
Example
Mr. RAM guaranteed the purchase of a mobile phone by LAXMAN, a minor. In case of failure for payment by LAXMAN, Mr. RAM will be liable to make the payment
Minor as Shareholder
A minor, being incompetent to contract cannot be a shareholder of the company. If by mistake he becomes a member, the company can rescind the transaction and remove his name from the register. But, a minor may, acting through his lawful guardian becomes a shareholder by transfer or transmission of fully paid shares to him.
Liability for torts
A tort is a civil wrong. A minor is liable in tort unless the tort in reality is a breach of contract. Thus, where a minor borrowed a horse for riding only he was held liable when he lent the horse to one of his friends who jumped and killed the horse.
Similarly, a minor was held liable for his failure to return certain instruments which he had hired and then passed on to a friend.