Law simplified | Indian Contract Act - video 5 | Minor’s Agreement | Void ab initio | VNSGU |BCom

Описание: The Indian Contract Act, 1872 is important legislation in the field of commercial law in India. It is basically responsible for regulating contractual relationships and obligations. A common legal complexity often

The Indian Contract Act, 1872 is important legislation in the field of commercial law in India. It is basically responsible for regulating contractual relationships and obligations. A common legal complexity often arises when an agreement with minor parties takes place. This is problematic because the Act does not permit such agreements outrightly.

Section 11 states that only persons who have attained majority according to the law are competent to contract. Therefore, there must be a law that defines the age of majority.

In India, the Indian Majority Act, 1875 declares the age of majority of all persons to be 18 years. If a minor has a guardian or Court of Ward looking after him, his age of majority becomes 21 years. Hence, any contract with a party below the age of 18 years is invalid as per the Act.

A very important case that had explained this issue is Mohiri Bibi v. Dharmodas Ghose. In this case, a minor had borrowed some money from a money-lender by mortgaging his house.

The money-lender moved to take possession of the minor’s house when he defaulted payment. The court, however, said since an agreement with minor parties is void, the money-lender could not enforce this contract.

Indian courts have repeatedly used this judgment to abrogate minors from contractual obligations. Hence, minors cannot enter into agreements unless some legal provisions allow them.

For example, a minor cannot transfer property as per the Transfer of Property Act. He can, however, receive property from other persons under a legal contract.


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