MINOR POSITION IN THE CONTRACT ACT

by • 29/05/2012 • B.com part 2 Business LawComments (0)849

Q2- Describe the position of agreement by a minor?

 

MINOR POSITION IN THE CONTRACT ACT OR EFFECTS OF LAW ON MINOR AGREEMENT

 

Agreement with a minor is absolutely void from the very beginning because a minor has no legal capacity to enter into a contract. Any person, who has not attained the age of eighteen years, is minor in the eye of law. The Contract Act very clear says that the parties to a contract must be competent who is off the age of majority.

EXAMPLE 1: (ESTOPPELS CASE)

Mr. Kamran a minor induces Miss. Saba to enter into a contract with him by a fraudulent misrepresentation that he is of full agree. Now after attaining the age of majority, Mr Kamran says that he was minor at the time of entering into contract. No doubt Mr. Kamran deceived Miss Saba but a minor cannot be stopped from setting up the defence of his infancy.

RULES ABOUT PARTNERSHIP (SECTION 30)

A minor cannot become a partner in the partnership firm and a new partner cannot be started with a minor. But with the consent of all other parties, he can be admitted in the benefits of the partnership. He is not liable personally for the debts of the form. He is liable only up to his shares in the firm.

 

RULES ABOUT FAVOURABLE AGREEMENT

If an agreement is made for the benefit of a minor than the minor can take all the benefits of that agreement.

 

RULES ABOUT AGENT

A minor can act as an agent. He can make his principal responsible by his acts. On behalf of his principle he may enter into contract with the third party. But he himself is not liable to his principal.

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