EFFECT OF MINORITY IN A CONTARCT

EFFECT OF MINORITY IN A CONTRACT

Minor is a person who has not attended the age of 18 years. In case a guardian has been appointed to the minor or where the minor is under the guardianship of the court of wards, the person continues to be minor until he completes his age of 21 years. According to Indian contract act a minor is not competent to contract. According to transfer of property act a minor cannot transfer property but he can be a transferee.

THE FOLLOWING POINTS MUST BE KEPT IN MIND WITH RESPECT TO MINORS CONTRACT:

1.       Contract with the minor is void ab initio and therefore the minor is not liable for the benefit received and his mortgaged property is not to be used.

2.       Since the contract is void ab initio, it cannot be ratified by the minor on attaining the age of majority.

3.       Stopple is an important principle of the law of evidence.

For example,  a minor fraudulently overstates his age and takes delivery of a motor car after executing a promissory note in favour of the trader for its price. The minor cannot be compelled to pay the amount to the promissory note, but the on equitable grounds may order the minor to return the car to the trader, if it is still with the minor.

4.       Minor estate is liable to pay the amount for supply of necessaries supplied to him or to any one to whom he is bound to support.

5.       An agreement by minor being void, the court will never direct specific performance of the contract.

6.       Since minor is not personally liable, he cannot be adjudicated as an insolvent.

7.       A minor can be an agent, but he cannot be a principal and partner. However he can get the benefit of partnership.

8.       An agreement by a parent or guardian entered into on behalf of the minor is binding on him

 Provided it is for his benefit or is for legal necessity. However, it has been held that an agreement for service, entered into by a father on behalf of his daughter who is a minor, is not enforceable at law.