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Which of the following is true with respect to minor entering a contract?
1 . An agreement with or by a minor is void ab initio.
2 . A minor can be a beneficiary of a contract.
3 . The contracts involving a minor as a beneficiary may be enforced at the option of the third party.
4 . A minor can ratify a contract on attaining majority.
- a)1 & 2
- b)2 & 3
- c)3 & 4
- d)1 & 4.
Correct answer is option 'A'. Can you explain this answer?
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Which of the following is true with respect to minor entering a contra...
Explanation:
The correct answer is option A: 1 & 2.
1. An agreement with or by a minor is void ab initio: This means that a contract entered into by a minor is void from the beginning. A minor does not have the legal capacity to enter into a contract and therefore any agreement they make is considered void.
2. A minor can be a beneficiary of a contract: While a minor cannot enter into a contract themselves, they can still benefit from a contract that is made by someone else. For example, if a parent purchases a life insurance policy with the minor as the beneficiary, the minor can receive the benefits of the policy.
3. The contracts involving a minor as a beneficiary may be enforced at the option of the third party: This statement is incorrect. Contracts involving a minor as a beneficiary cannot be enforced by the third party. Since a minor cannot enter into a contract, they do not have the legal capacity to enforce it.
4. A minor can ratify a contract on attaining majority: This statement is also incorrect. A minor cannot ratify a contract upon reaching the age of majority. The contract remains void ab initio and cannot be ratified later.
In conclusion, only statements 1 and 2 are true with respect to a minor entering a contract.
The correct answer is option A: 1 & 2.
1. An agreement with or by a minor is void ab initio: This means that a contract entered into by a minor is void from the beginning. A minor does not have the legal capacity to enter into a contract and therefore any agreement they make is considered void.
2. A minor can be a beneficiary of a contract: While a minor cannot enter into a contract themselves, they can still benefit from a contract that is made by someone else. For example, if a parent purchases a life insurance policy with the minor as the beneficiary, the minor can receive the benefits of the policy.
3. The contracts involving a minor as a beneficiary may be enforced at the option of the third party: This statement is incorrect. Contracts involving a minor as a beneficiary cannot be enforced by the third party. Since a minor cannot enter into a contract, they do not have the legal capacity to enforce it.
4. A minor can ratify a contract on attaining majority: This statement is also incorrect. A minor cannot ratify a contract upon reaching the age of majority. The contract remains void ab initio and cannot be ratified later.
In conclusion, only statements 1 and 2 are true with respect to a minor entering a contract.
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Which of the following is true with respect to minor entering a contra...
Understanding Minor's Capacity to Contract
In contract law, a minor (typically defined as a person under the age of 18) has limited capacity to enter into contracts. Here’s a breakdown of the statements provided:
1. An Agreement with or by a Minor is Void Ab Initio
- A contract entered into by a minor is considered void from the outset (ab initio).
- This means that the minor cannot be held legally responsible for any obligations arising from the contract.
2. A Minor Can Be a Beneficiary of a Contract
- It is true that a minor can benefit from a contract, such as being a beneficiary in a life insurance policy or a trust.
- This does not necessarily mean they can enter into a binding contract on their own.
3. The Contracts Involving a Minor as a Beneficiary May Be Enforced at the Option of the Third Party
- While third parties can enforce rights arising from contracts benefiting a minor, the enforcement is not guaranteed and often depends on the circumstances.
- This statement can be misleading as it suggests that the minor's rights are automatically enforceable.
4. A Minor Can Ratify a Contract on Attaining Majority
- Contracts made by minors cannot be ratified once they reach the age of majority.
- This means that any contract entered into while a minor remains void and cannot be validated later.
Conclusion
Based on the analysis above, the correct option is 'A' (1 and 2).
- The first statement is definitively true, while the second acknowledges that a minor can be a beneficiary without entering a binding contract.
- Therefore, only statements 1 and 2 hold true in the context of minor's capacity in contracts.
In contract law, a minor (typically defined as a person under the age of 18) has limited capacity to enter into contracts. Here’s a breakdown of the statements provided:
1. An Agreement with or by a Minor is Void Ab Initio
- A contract entered into by a minor is considered void from the outset (ab initio).
- This means that the minor cannot be held legally responsible for any obligations arising from the contract.
2. A Minor Can Be a Beneficiary of a Contract
- It is true that a minor can benefit from a contract, such as being a beneficiary in a life insurance policy or a trust.
- This does not necessarily mean they can enter into a binding contract on their own.
3. The Contracts Involving a Minor as a Beneficiary May Be Enforced at the Option of the Third Party
- While third parties can enforce rights arising from contracts benefiting a minor, the enforcement is not guaranteed and often depends on the circumstances.
- This statement can be misleading as it suggests that the minor's rights are automatically enforceable.
4. A Minor Can Ratify a Contract on Attaining Majority
- Contracts made by minors cannot be ratified once they reach the age of majority.
- This means that any contract entered into while a minor remains void and cannot be validated later.
Conclusion
Based on the analysis above, the correct option is 'A' (1 and 2).
- The first statement is definitively true, while the second acknowledges that a minor can be a beneficiary without entering a binding contract.
- Therefore, only statements 1 and 2 hold true in the context of minor's capacity in contracts.
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Which of the following is true with respect to minor entering a contract?1 . An agreement with or by a minor is void ab initio.2 . A minor can be a beneficiary of a contract.3 . The contracts involving a minor as a beneficiary may be enforced at the option of the third party.4 . A minor can ratify a contract on attaining majority.a)1 2b)2 3c)3 4d)1 4.Correct answer is option 'A'. Can you explain this answer?
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Which of the following is true with respect to minor entering a contract?1 . An agreement with or by a minor is void ab initio.2 . A minor can be a beneficiary of a contract.3 . The contracts involving a minor as a beneficiary may be enforced at the option of the third party.4 . A minor can ratify a contract on attaining majority.a)1 2b)2 3c)3 4d)1 4.Correct answer is option 'A'. Can you explain this answer? for CA Foundation 2025 is part of CA Foundation preparation. The Question and answers have been prepared according to the CA Foundation exam syllabus. Information about Which of the following is true with respect to minor entering a contract?1 . An agreement with or by a minor is void ab initio.2 . A minor can be a beneficiary of a contract.3 . The contracts involving a minor as a beneficiary may be enforced at the option of the third party.4 . A minor can ratify a contract on attaining majority.a)1 2b)2 3c)3 4d)1 4.Correct answer is option 'A'. Can you explain this answer? covers all topics & solutions for CA Foundation 2025 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for Which of the following is true with respect to minor entering a contract?1 . An agreement with or by a minor is void ab initio.2 . A minor can be a beneficiary of a contract.3 . The contracts involving a minor as a beneficiary may be enforced at the option of the third party.4 . A minor can ratify a contract on attaining majority.a)1 2b)2 3c)3 4d)1 4.Correct answer is option 'A'. Can you explain this answer?.
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