Rules Regarding Minor’s Agreement | Civil Law for Judiciary Exams PDF Download

Overview of Indian Contract Act 1872

• The Indian Contract Act 1872 is a crucial piece of legislation that governs commercial law in India.
• It is responsible for regulating contractual relationships and obligations in the country.
• One particular area of complexity within the Act involves agreements with minor parties.
• Contracts involving minors are subject to specific rules and restrictions.

Understanding Contracts with Minors

• In India, individuals under the age of 18 are considered minors according to the law.
• Even individuals who are 17 years and 364 days old fall under the category of minors.
• The age of majority, indicating when a person becomes an adult, is determined by the Indian Majority Act of 1875.
• Minors are legally deemed incompetent to enter into any type of contract as per the Indian Contract Act 1872.
• Contracts involving minors are considered void and unenforceable.
• The law aims to safeguard the interests and well-being of minors by restricting their contractual capacity until they reach the age of majority.

Implications of Contracting with Minors

• Contracts with minors are voidable at the option of the minor, meaning that the minor can choose to enforce or void the contract upon reaching the age of majority.
• However, if a minor ratifies a contract after attaining majority, it becomes a valid and binding agreement.
• Exceptions exist for contracts for necessaries, which are goods and services essential for the minor's support and well-being.
• These contracts are typically enforceable against minors, even though they are underage.

Examples of Contracts with Minors

• An 17-year-old individual enters into a contract to purchase a laptop. This contract would generally be voidable by the minor.
• However, if the same individual ratifies the contract upon turning 18, it becomes legally binding.
• Contrastingly, a contract for emergency medical treatment for a minor would typically be enforceable, as it falls under the category of necessaries.

Nature of Minor's Agreement

• An agreement made by a minor holds no legal weight and is considered void, lacking enforceable obligations on either party.
• Contracts with minors are invalid from the outset, rendering them nonexistent in legal terms.
• Consequently, neither party is held to any contractual duties or responsibilities stemming from such an agreement.
• The concept of a void minor's agreement underscores the legal understanding of a minor's limited capacity to engage in binding contracts, ensuring their protection and safeguarding their rights.

What are the Rules Regarding Minor’s Agreement?

The rules regarding minor’s agreement are:

Rules Regarding Agreements with Minors

• Agreements with minors are considered void under Section 10 of the Indian Contract Act.
• This was definitively settled in the case of Mohri Bibi v. Dharmo Das Ghose in 1903.

Absence of Ratification

• Even upon reaching adulthood, a minor cannot ratify an agreement with a void status.
• However, a new promise supported by fresh consideration upon reaching majority will be binding.

Minors as Promisees or Beneficiaries

• A minor can be a promisee or beneficiary in a contract and enforce it.
• For example, a minor can purchase property or enforce a promissory note.

No Estoppel Against Minors

• If a minor misrepresents their age in a contract, they cannot be held liable.
• Estoppel does not apply to minors using their age as a defense.

Specific Performance Exceptions

• Specific performance of a minor's contract is not possible due to its void nature.
• However, a guardian's contract for a minor can be specifically enforced if beneficial to the minor.

Partnership and Agency

• A minor cannot be a partner but can be admitted to partnership benefits.
• A minor can act as an agent without personal liability.

Parental Liability and Joint Contracts

• A parent or guardian is not bound by a minor's actions without authority.
• In a joint contract with an adult, the adult is liable while the minor is not.

Liability Scenarios

• For necessaries supplied to a minor, the minor is not personally liable.
• The minor's estate is liable only if the goods were necessary and lacking.

Rules regarding a Minor's Agreement

• Void nature of a minor's agreement: A minor's agreement is considered void, which means it is not legally binding on the minor.
• Exceptions for enforceability: Despite being void, certain agreements with minors may still be enforceable under specific circumstances, such as contracts for necessaries.
• Limited liability for necessaries: Minors are held liable for the value of necessaries supplied to them, such as food, clothing, and shelter.
• Inability to bind others: A minor's agreement typically cannot bind other parties who are involved in the contract.
• Specific considerations for torts: In cases involving torts, the liability of a minor may vary, and they might be held responsible for their actions under certain conditions.
• Considerations for partnerships: Minors have limited capacity to enter into partnerships and may not be fully bound by the terms of a partnership agreement.
• Considerations for suretyship: Minors are generally not competent to act as sureties for others due to their limited legal capacity.