drunkard
crack
convict
minors
According to sec 11
“ every person can enter into contract who is of
the age of the majority according to the law to
which he is subject and who is of sound mind
and is not disqualified from contracting by any
law to which is subject ”
As per this section the following type of persons
cannot enter into contract
1.Minor
2.Person of unsound mind
3.Person disqualified by law
MINOR
A minor is a person who has not attained the age of
18 years.
In case the ward is appointed by the court then the
minor will attain majority at the age of 21 years.
Contract of minor is void and it is abinitio
It means the minor contract is not only void,
it is bad from the beginning – void ab initio
The famous case on this point is
MOHORIBBI VS DHARMODAS GHOSE
Dharmodas Ghose a minor entered into a contract for
borrowing Rs.20,000=00 from a money lender and
out of this a sum of Rs.800=00 was paid to the
minor on execution of the mortgage deed of his
porperty in favour of the money lender.
Subsequently, the minor sued for the setting aside of
the mortgage.
The Privy council said that “ the minor contract is
void and the money lent is also lost, no question of
refund of the money and the mortgage was held in
valid. The contract is void ab initio.
Effects of minor’s contract
1. Minor’s contract is void ab initio
2. No estoppels against minor
3. No liability in contract or in tort arising out of
contract
4. No ratification
5. Restoration of property or money
6. Can be beneficiary in the contract
7. Minor property is liable for necessaries
8 Minor can be a partner
9 minor can be an agent
10. Minor can execute a negotiable
instrument.
2. No estoppel against minor
Estoppel means when some
another person to believe that
thing or fact is true, and then
cannot be allowed to denary the
thing.
one make
a particular
later on he
truth of that
It is said that he is estopped from denying the
fact which he made other to believe.
But in the case of minor it is not applicable ,
that is to say he will be having a chance to
deny.
Gupta a minor borrowed a sum of
Rs.10,000 from Ram fraudulently
representing himself to be a major.
Gupta after borrowing refused to repay
the money to Ram as per agreement.
Ram filed a suit against a minor Gupta for
recover of the money,
Here, Gupta can take a defense that he
was a MINOR and the rule of estoppel is
not applicable in this case
3. No liability in contract or in tort arising out of contract
The term “ tort “ means – a civil wrong
If a minor enters into a contract misrepresenting his
age he cannot be held responsible as he is not having
any liability under tort.
4. No ratification
It means that confirmation of an act later on, or
approving of an act subsequently.
In case of minor contract no ratification is available
It implies that an agreement by a minor during the
period of minority cannot be confirmed by him on
attaining majority. This is because the agreement is
void ab initio.
5 Doctrine of restoration – is applicable to minor
Restoration means restoring back to the rightful
owner that which he lost or which was taken away
from him.
This doctrine is made applicable to the minor because
if the minors were allowed to cheat by taking property
and not giving it back to the true owner there will be a
scope to do harm to the society.
In case of money in the hands of minor it will be made
to restore as far as possible to the extent of the
amount that is traceable in the hands o the minor.
Mahesh a minor sold certain property to Suresh and he
received a sum of Rs.25,000 as part of the purchase
money subsequently he applied to the court for
cancellation of the sale on the plea that he was a minor
Court allowed to cancel the sale and allowed the minor
to take back the property subject to restoring the
money he received from Suresh.
The other party should satisfy the court that minor has
misrepresented his age and the minor has the money
or property in his hand and the other party was not
aware of the minority
6. Minor can be beneficiary in a contract
Law allows a minor to get the benefits under the
contract and he will be allowed to enforce the same in
the court, minor is capable of getting the benefit,
A minor can buy immoveable property by payment
7. Minor property is liable for necessaries
Some times the person supplies
necessities to a minor in such cases the
suppliers of necessities is entitled to be
reimbursed from the property of minor
under quasi contract.
The only condition is that the supplies
made is to be according to the status of
the minor
and there was a need of such thing at
that time
Nash a minor ordered 11 coats
with Inman a tailor at the cost of
45£ but the parents of the minor
proved to the court that the minor
is already having sufficient
number of coats and 11 coats are
necessary and the Inman could
not get the money for the coat
As the supply proved to be not
necessary for minor
supply of funds to the marriage of minor girl
expenses incurred for the funeral ceremony of the
parents of the minor
cost incurred in defending a minor in a criminal case
money lent to minor for saving property in
execution
Money lent for education of the minor
training of the minor
Medical care of the minor
Legal advice expenses etc.,
8.Minor can be a Partner
9.Minor can be an agent
A minor can be admitted to the benefits of
a partnership firm .
He is not personally liable.
A Minor can be appointed as an agent as the
Agent as the agent is the link only between
The principal and the 3rd party.
But minor cannot appoint an agent
10.Minor can execute a negotiable instrument
A minor can draw, execute, and endorse
Negotiable instruments so as to bind all
Other parties except himself
II the second category of persons who cannot
Enter into contract is
PERSONS OF UNSOUND MIND
A Persons is said to be of sound
mind for the Purpose of making a
contract if at the time
When he makes it, he is capable of
understanding I
It and of forming a rational
judgment as to its
Effects upon his interest.
He should be capable of understanding
He should be capable of forming a rational
Judgment about the effects of the contract
on his interest
The following persons are considered
as persons of
Unsound mind.
Who cannot enter into contract
1.Idiot
2.Lunatic
3.Drunken
4.Intoxicated
5.Semi crack
A person who is usually of unsound mind, but
Occasionally of sound mind may made a contract
When he is of sound mind. A person who is sound
Mind but occasionally of unsound mind may a contract
When is of sound mind.
III the third category of person who cannot enter into
Contract are
1.An alien enemies:-an alien is foreigner to the
Land, an alien enemy cannot enter into a valid
Contract during war
2.Foreign sovereigns
Diplomatic staff
Representatives
Of foreign states:-A suit cannot be filed against
Them but they can file suit against Indians
3.Insolvent :-when a person is declared as an
Insolvent his property vests in the receiver or
Official assignee and he is deprived of his legal
Power to deal with .
4.convict:- A conviction cannot enter into a
Contract during conviction period
5.Corporation and
Companies:-a company can act only as per
Memorandum of association if it is out side the
Scope it will be held as ultra virus and not
binding on company.