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Minors Agreement

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Anushka Kalaskar
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© © All Rights Reserved
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0% found this document useful (0 votes)
30 views4 pages

Minors Agreement

Uploaded by

Anushka Kalaskar
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PDF, TXT or read online on Scribd
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Busi

nessl
aws:
.

TheI
ndi
anCont
ractAct
,1872:
(Compet
encyoft
hepar
ti
es)

Oneoft
heessent
ial
elementsofaval
i
dagreementist
hatt
hepar
ti
est
othecont
ractmustbe
compet
entt
oenteri
ntoalegal
lybi
ndi
ngagreement
.

Cert
aincondit
ionsmustbef ul
fi
ll
edtobri
ngenf or
ceabi
l
ityt
oanagr eement.Accor
dingt
osecti
on
10oftheActot hercondi
ti
onsare:competencetocont
ract
;f
reeconsent;l
egali
tyofobj
ectand
consi
derat
ion;andthatagreementshoul
dnotbeexpesslydecl
aredv oi
dundertheAct.

Part
iesconcer
nedmustbelegal
lycompetentt
obi
ndthemselvesbypr
omises.
Forknowi
ngthe
cer
taincondi
ti
onswhi
chmustbef ulf
il
ledt
obri
ngenf
orceabi
l
itytoanagr
eementissect
ion10
andmeaninganddefi
nit
ionofcont
ract.

DEFINITI
ONOFCONTRACTUNDERTHEI NDIANCONTRACTACT1872-Thedefini
ti
onof
Contracti
sgiv
enunderS.2(h)oftheI
ndi
anContractAct
,whi
chprov
ides'
acont
racti
san
agr
eementenf or
ceabl
ebylaw'.Thusacontr
acti
sanagreementmadebet
weentwoormore
par
tieswhichthelawwil
lenfor
ce.

From t
hedefi
nit
ionoft
heter
m'contract
',
iti
sclearthatever
ykindofagreementi
snota
contr
act,
anagr
eementwhichcr
eateslegalri
ght/obli
gati
ons,l
i
abil
it
iesbetweent
hepar
tiesand
whichhassomev al
uei
ntheeyeoflawisacont ract.

Forexample:Apromisestopay100rupeestoBifBki
dnapsC,
thi
sagreementisnot
enfor
ceabl
eatlawalthoughther
eisapromiseaswell
asconsi
derat
ionbecausetheagr
eement
bei
ngunlawfulandisnotenfor
ceabl
eatlaw.

Competencyoft
hepart
ies:Anagreementwil
lbecomecontr
actifi
tisent
eredi
ntobypar
ti
es
whoarecompetentt
ocontract
,secti
on10ofthecont
ractactr
equir
esthepart
iest
obe
competentt
omakeav ali
dcontr
act,I
tst
ates:

“al
lagreement
sarecontr
actsift
heyar
emadebyt
hefreeconsentofthepar
tiescompetentto
contr
act,f
oralawf
ulconsi
derati
onandwi
thal
awf
ulobjectandarenotexpr
esslydecl
aredtobe
voi
d”.

I
nthi
sregar
dsect
ion11i
sver
ycl
ear
.I
tst
atest
hat
:

"
Ev er
ypersoni
scompetentt
ocontr
actwhoisoftheageofmajorit
yaccor
dingtot
helawto
whichheissubj
ect,
andwhoisofsoundmind,andisnotdi
squal
i
fiedfr
om contr
act
ingbyany
l
awt owhichheissubj
ect
."

I
tfol
l
owst
hatt
hef
oll
owi
ngper
sonsar
eincompet
entt
ocont
ract

(
1)Mi
nor
s

(
2)Per
sonsofunsoundmi
ndand(
3)Per
sonsdi
squal
i
fiedbyanyl
awt
owhi
cht
heyar
esubj
ect
.
Whoi
saMi
nor
?

Accordi
ngt osect i
on3oft heIndianMaj or
ityAct,
2875,ev er
ypersondomi ci
ledi
nIndi
ashall
att
ainmajorit
y(i)ingeneralcases,whenhehascompl etedt heageof18y earsandnotbef
ore;or
(i
i)
intwospecial cases,whereaguar di
anofmi norspersonandpr opertyhasbeenappoint
edby
thecourtundert heGurdianandWar dsAct,
1890,orwher eami nori sundertheGurdi
anshipof
courtof2ards(beforetheageof18y ears)
,aminorshall att
ainmaj ori
tywhenhehascompl eted
theageof21y ear sandnotbef ore.

Legal
Posi
ti
onofaMi
nori
nIndi
anLaw:

I
ndi anCont r
actActprot
ectsminorsandpr
ovi
desanumberofpriv
il
egestothem.Lawprotect
s
theseper sonsandpreserv
stheirr
ight
sandest
ates,
excuset
hei
rnegl
igences,
andassi
stthem i
n
pleadings.

Thus,
i
nmi
nor
'scase,
thel
awbehav
esl
i
kehi
sguar
dian.

Thepr
ovi
sionsofl
awgov
erni
ngagr
eement
swi
thami
nori
nIndi
amaybedeal
twi
thasf
oll
ows:

1.An,
agreementwithorbyaMi norisvoi
dabi ni
ti
o(f
rom theverybeginni
ng):Anagreement
withaminori
sv oi
dsi ncev erybeginni
ng.I
tisalt
oget
hervoidagainstt
hemi nor.
Therefor
ea
minorisnotl
i
ableeithert operfor
m whathehaspr omisedtodoundert hecontractnortor
epay
themoneythathehasr eceiv
edunderi t
.

Leadi ngCase: MohoriBibiVsDhar modasGhose( 1903)LR30Cal 539,i


tisanestabl
ishedrulein
Indiat hatanagreementwi thami norisv oidabinit
io,
namel y,
sinceit'
sconceptionand
i
ncept i
on.Dharmodas,ami norborrowed8000r upeesf rom thehusbandofMohor iBi
bi and
execut edamor tgagebondf orhispropertyassecur i
ty.
Af t
erthedeathofherhusband, Mohori
Bibi f
iledasuitagainstDharmodasf ortherecoveryofl oan.Thecourtheldthatasthemi nors
cont r
actwasabsol utelyvoidnoquest ionofrefundingmoneycoul dariseinthese
circumst ances.
Mohor iBibicouldnotrecovertheloan.

2.Minorcanbeabenef i
ciar
y:Thelawdoesnotr egar
dami norasincapableofaccepti
nga
benefi
t.I
fanagr eementismadef orhi
sbenefi
t,hecanbindtheotherpartyandcanclaim such
benefi
t.Thati
stosayt hattheminorisent
it
ledtoallt
hebenefi
tsavail
abletohim,underthe
contr
act.Forexampl e,
ifapromisor
ynoteisdul
yexecutedinfavourofami nor,
iti
sav ali
dand
canbeenf or
cedi ntheCourtofLaw.(Shar
afAli
v sNoorMohd.,AIR1924Rang136) .

3.
NoRat i
fi
cat
ionofAgr eement
:Anagreementmadebyaminorcannotbeconf
irmedbyhi
m on
at
tai
ningmajori
ty.Thi
sisbecause,
minor’
sagr
eementi
svoi
dabi ni
ti
o,and,
ther
efor
ecannotbe
madev al
i
dbyr at
ifi
cat
ion.
4.Noestoppel
againstaminor–Therecanbenoest oppelagai
nstami norwher
eami norhas
enter
edintoacontractbymi
srepr
esenti
nghisage,
hecannotbemadel iabl
eonthecontr
act.
Butcourtmaydirectthemi
nortorest
orethepr
opert
yt otheotherpar
tyas“minorscanhaveno
pri
vil
egetocheatmen” .

5.
Noi
nsol
vency–Ami
norcannotbedecl
aredi
nsol
vent
.

6.Nospecifi
cperfor
manceexceptincert
aincases–Thecour twil
lnev
erdirect‘
speci
fic
perfor
mance’ofanagreementbyminor.Butacontractent
eredint
obyt heguardi
anormanager
onmi nor
’sbehal
fcanbespecif
ical
l
yenforcedifi
tiswithi
ntheauthori
tyanditisfort
hebenef
it
oftheminor.

7.
Mi norasPar t
ner–Ami norcannotbeapar
tneri
naf i
rm.However
,accordi
ngt
osecti
on30of
I
ndianpartnershipact
,1932,
hecanbeadmi t
tedtothebenef
it
sofpart
nershi
pwit
htheconsent
ofallpar
tners.

8.Minorasanagent–Ami
norcanbeappoi
ntedasanagentbuthewi
l
lnotbeper
sonal
l
yli
abl
e
foranyofhi
sacts.

9.Sur
etyforminor–Ami norcannotbesur
etyashei
snotli
abl
etopayunderacont
ract
.Wher
e
anadultst
andssuret
yforami nor
,theadul
tisl
i
ablet
othi
rdpar
ty.

10.Liabi
lit
yf ornecessari
es–Accor di
ngtosect i
on68ofI ndiancontractact,1872,aminorisnot
personall
yliable,i
tishispropertyonlywhichisliable.Ifhehasnopr opert
y,t
hesuppl i
erwil
l get
nothingfornecessar i
essupplied.Ifhehaspr operty,suppli
erwi l
lgetreasonablepri
ceonly.The
wordnecessar i
esincl
udear t
iclesrequir
edtomai ntainaparticul
arpersonint hest
ate,degree
andst at
ioninl i
feinwhichhei s.InIndi
a,food,cl
ot hing,shel
terandeducat i
onhav ebeenhel dto
benecessar ies.

Thelawpr
otectsminor
'sr
ightbecausetheyarenotmat
ureandmaynotpossesst
hecapaci
ty
toj
udgewhatisgoodandwhati sbadforthem.

Thel
egalposi
ti
onoft
hecont
ract
s,ent
eredi
ntowi
thorbyami
nor
,hav
ebeensummar
isedat
onepl
aceasunder
:

1.
Acont
ractwi
thorbyami
nori
sabsol
utel
yvoi
dandnotj
ustv
oidabl
e.

2.
Hecanbeapr
omi
seorabenef
ici
ary
.
3.
Themi
nor
,ev
enonhi
sat
tai
ningt
hemaj
ori
ty,
cannotr
ati
fyhi
sol
dagr
eement
.

4.
Ami
norcanal
way
staket
hepl
eaofbei
ngami
nor
.

5.I
faminorhashappenedt
orecei
vesomebenef
it
sunderav
oidcont
ract
,hecannotbeaskedt
o
ret
urnorr
efundsuchbenef
it
s.

6.
Theest
ateofami
nori
sli
abl
etoaper
sonwhosuppl
i
est
henecessar
iesofl
i
fet
ohi
m.

7.
Ami
norcanactasanagent
,andbi
ndt
hepr
inci
pal
,
butnothi
msel
f.

8.
Ami norcannotbecomeapart
nerinanypar
tner
shi
pfi
rm.
Howev
er,
hemaybeadmi
tt
edt
othe
benef
it
sofanal r
eadyexi
sti
ngpart
nershi
pfi
rm.

Ref
erences:

1.
Busi
nessl
aw,
M.C.
Kuchhal
,
VikasPubl
i
shi
ngHousePv
tLt
d,Noi
da,
2014.

2.
Busi
nessLaw,
R.K.
Bangi
a,Al
l
ahabadLawAgency
,2007.

3.
Cont
ractandSpeci
fi
cRel
i
efAct
,East
ernl
awcompany
,Noi
da.

4.
Busi
nessr
egul
ator
yfr
amewor
k,B.
N.Agar
wal
,
Nav
yugSahi
tyaSadan,
Agr
a.

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