CONTRACT WITH MINOR


One essential of a valid contract is the competence of the parties to form a contract. Section 11 of the Indian Contract Act, 1872, states that the capacity to contract for an individual is:
1. Attaining the age of majority (As per the Indian Majority Act, 1875, the age of majority in India is specified as 18 years)
2. Being of sound mind and
3. Not disqualified from entering into a contract by any law
Who would be a Minor?
Any individual, domiciled in India, who has not attained the age of 18 years, is referred to as a minor.
What is the contractual capacity of a minor?
A contract with minors stand null and void. Any contract with a minor, that is any individual less than 18 years of age cannot contract, is void ab-initio (from the beginning).
Mohiri Bibi v. Dharmodas Ghose
The case dates back to the year 1903, in which, for the first time, the Privy Council ruled that the marriage of a minor was void-ab-initio and that the contract was void from the start.
1. The appellant, Dharmodas Ghosh, mortgaged his house to the defendant, the moneylender when he was a minor. At this point, the defendant’s counsel knew the age of the complainant.
2. Later, the complainant paid only Rs 8000 but declined to pay the remainder of the revenue.
3. The mother of the complainant was his legal guardian at the time, so he started an action against the claimant, claiming that he was a minor at the time of the contract, so that the contract, being void, is not bound by the same.
4. The court, however, said since an agreement with minor parties is void, the money-lender could not enforce this contract.

MUSKAN NARANG

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