Minors (those under the age of 18, in most states) lack the capacity to make a contract. So a minor who signs a contract can either honor the deal or void the contract . There are a few exceptions, however. For example, in most states, a minor cannot void a contract for necessities like food, clothing, and lodging.
Can a minor enter into a valid legal contract?
Background: Generally, every person is competent to enter into a contract . ... The Contracts Act 1950 does not stipulate the effect of an agreement entered into by a minor and from the decided cases show that all contracts entered into by a minor is void and a minor cannot sue or be sued under such contract.
When can a contract with minors be voided?
A contract entered into with a minor is therefore voidable. This means that the minor can cancel, or avoid any contract at any time before reaching the age of 18 years , and for a reasonable time afterwards. A minor does not have to give any reason for cancelling the contract.
Why it is said that a minor’s agreement is void?
The primary reason for holding a minor’s agreement void is that where an agreement, through which a minor includes a promise on his part or his promise, is an essential part of the agreement, it stands void since a minor is not qualified to make a promise imposing a legal obligation .
Is a contract with a minor always void?
A contract is voidable if it was entered into when one party was a minor . This is because the law treats minors as not having the capacity to enter into contracts. However, voidable contracts can be ratified at a later stage.
Who is not eligible for a contract?
Minor is not eligible to enter into a contract. Minors are individuals who are under the age of 18. Minors are not considered to have legal capacity, meaning they do not have the ability to make contracts with other people. If a minor signs a contract, they have the ability to void the deal with certain exceptions.
Who is not eligible for contract?
Section 11 of the Indian Contract Act, 1872, states when a person is said major, sound and not disqualified by law, then he is said to be competent to contract. Contract with a minor, unsound or intoxicated person is void , as they are incompetent to contract. Incompetency has a critical role in contracts.
What type of contracts Cannot be voided by a minor?
There are special instances in which minors cannot disaffirm a contract. In most states, they cannot disaffirm a contract for necessities such as food, shelter, clothing, healthcare, or employment . Minors may also not disaffirm a contract for the purchase or sale of real estate.
What is minor contract?
A minor is one who has not attained the age of 18 , and for every contract, the majority is a condition precedent. By looking at the Indian law, minor’s agreement is a void one, meaning thereby that it has no value in the eye of the law, and it is null and void as it cannot be enforced by either party to the contract.
What contracts can be enforced against a minor?
1) A contract with a minor is void and, hence, no obligations can ever arise on him thereunder. 2) The minor party cannot ratify the contract upon attaining majority unless a law specifically allows this. 3) No court can allow specific performance of a contract with minors because it is void altogether.
What makes a contract not valid?
The object of the agreement is illegal or against public policy (unlawful consideration or subject matter) The terms of the agreement are impossible to fulfill or too vague to understand. There was a lack of consideration. Fraud (namely false representation of facts) has been committed.
What are the consequences of a contract by a minor?
A minor’s agreement stands void ab initio (Mohiri Bibee, 1903 PC), hence a minor is discharged from the contractual obligations . But under several laws, such as the TPA, the Sales of Goods Act, the Partnership Act, the Companies Act and the Insurance Laws etc.
Is a void contract a contract?
A void contract is a formal agreement that is effectively illegitimate and unenforceable from the moment it is created . A void contract differs from a voidable contract, although both may indeed be nullified for similar reasons. A contract may be deemed void if it is not enforceable as it was originally written.
What is the position of minor in contract?
The position of minor under the Indian Contract Act, 1872 is to be concluded as that a minor cannot enter into a contract and the same would be void ab initio . The minor cannot on attaining majority rely on ratification of the contract made by him during his minority.
Can estoppel be applied against minor?
No estoppel against a minor
But the responsible authority has decided that there is no such estoppel against a juvenile. Estoppel means that if a person makes a comment that misleads another person, he or she cannot refute the same statement in the future as his or her duty to make a statement occurs.
Who is a minor in India?
India. In all 28 states and 8 union territories, a minor is referred to as someone under the age of 18 . In rare cases minors aged 16 or 17 who are charged with extremely heinous crimes could sometimes be treated as an adult.
