Nature and Effect of a Minor’s Agreement
Nature and Effect of a Minor’s Agreement
1. Who is a Minor?
Under Indian law, a minor is a person who has not completed 18 years of age (or the age of majority as per personal law).
A minor is considered not competent to contract under Section 11 of the Indian Contract Act, 1872.
2. Nature of Minor’s Agreement
Any agreement entered into by a minor is void ab initio (void from the beginning).
It is not a valid contract and has no legal effect.
The law treats minors as incapable of understanding and entering into contracts that impose binding obligations.
3. Effect of Minor’s Agreement
A minor’s agreement cannot be enforced by the minor or by the other party.
If a minor enters into a contract, they cannot be held liable for breach.
Conversely, the minor cannot sue to enforce the contract.
4. Exceptions / Special Situations
A minor can enter into a contract for beneficial purposes (e.g., a contract for necessities like food, clothing, education, or employment) — this is enforceable.
If a minor accepts benefits under a contract, the minor may be bound to restore any benefits received if the contract is later repudiated.
5. Liability of the Minor’s Guardian
Sometimes, guardians may enter contracts on behalf of the minor.
Such contracts can be binding if made in the interest of the minor.
6. Minor as a Partner
A minor can be admitted to the benefits of a partnership, but:
The minor is not personally liable for losses.
The firm can be liable for the minor’s share of losses.
7. Important Case Laws
✅ Mohori Bibee v. Dharmodas Ghose (1903)
This is the landmark case on the void nature of a minor’s agreement.
The Privy Council held that any contract entered into by a minor is void ab initio and not merely voidable.
Therefore, a minor cannot be held liable, nor can the contract be enforced against them.
✅ Nash vs. Inman (1908)
A minor was supplied with luxury goods.
Court held that contracts for necessaries are enforceable against the minor.
But contracts for non-necessaries (luxuries) are void.
✅ Mohandas v. K.K. Verma (1917)
The court held that a minor’s agreement is void but the minor can repudiate the contract to avoid liability.
8. Summary Table
| Aspect | Explanation |
|---|---|
| Age of Minor | Below 18 years |
| Nature of Agreement | Void from the beginning |
| Enforceability | Not enforceable by or against the minor |
| Liability | Minor not liable for breach |
| Exception | Contracts for necessaries are enforceable |
| Minor in Partnership | Can be admitted to benefits, not liabilities |
| Guardian’s Role | Guardians can contract on behalf of minor if in minor’s interest |
Quick Recap
Minor’s contracts are void, no rights or liabilities.
Exceptions for necessaries.
Minor can avoid any contract at their option.
Guardians can act on minor’s behalf in the minor’s interest.
Minor can be admitted as a beneficiary partner but without personal liability.
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