Meaning of Minor’s Contract
A minor under Indian law is a person who has not completed 18 years of age (or 21 years in cases where a guardian is appointed). The validity of a minor’s contract is governed by the Indian Contract Act, 1872. According to Section 11, only persons who are of the age of majority, of sound mind, and not disqualified by law are competent to contract. Hence, a minor is not competent to contract, and any agreement entered into with a minor is void ab initio (void from the beginning). This principle was clearly laid down in the landmark case of Mohori Bibee v. Dharmodas Ghose (1903).
Legal Effect and Restrictions
Since a minor’s contract is void ab initio, it cannot be ratified even upon the minor attaining majority. The minor is not bound by the contract, though the other party, if a major, remains bound if he misrepresented the minor’s age. However, a minor can benefit under a contract; for example, he may receive gifts or enter into arrangements for necessities under Section 68, which states that a person supplying necessities to a minor is entitled to reimbursement from the minor’s property. Thus, while minors are protected from liability, the law ensures fairness in transactions.
Importance of the Rule
The principle protects minors from exploitation due to their lack of maturity and experience, maintaining fairness in commerce. However, it does not grant a free license to cheat others, since minors are bound to restore benefits obtained by misrepresentation to avoid unjust enrichment. This strikes a balance between protecting the minor and preventing misuse of the law. The rule also illustrates the broader legal principle that contracts require free consent from competent parties.
Real-Life Example
Suppose a 17-year-old student takes a loan from a moneylender for purchasing a motorcycle. Later, when the student refuses to repay, the moneylender cannot enforce the contract in court since the agreement is void ab initio under Section 11. However, if the moneylender had supplied essential items like food, clothing, or educational books, he could claim reimbursement from the minor’s property under Section 68.
Mnemonic to Remember – “VNR”
To remember the rules of a minor’s contract, think of VNR:
- V = Void ab initio (Sec. 11 – not valid from the start)
- N = Necessaries allowed (Sec. 68 – necessities enforceable)
- R = Restitution of benefits (minor may return unfair advantage)
So remember: “Minor’s Contract = VNR (Void, Necessaries, Restitution).”
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