Chapter-3 - DAV College For Girls, Yamunanagar

Acc. To section 10 of Indian Contract Act“ All those agreements can be enforced by law , which are made by the person having contractual capacity.”  Acc. To section11 of I.C. Act- “Every person is competent to contract which is of age of majority acc. to the law of which he is the subject , and who is of sound mind and is not disqualified by from contracting by any law to which he is subject.” 

Major.

Person

of sound

mind. Person disqualified by law.

Acc. To section 3 of Indian Majority Act- “ a minor is a person who has not completed eighteen yrs. of age.” but if a guardian of person or property or both has been appointed by a court of law , he attains majority on completion of 21 years . Any person entering into contract with a minor will have to suffer as contract is void abinitio.  CASE-Mohri bibi v/s Dharam das Ghosh- In this case DG was a minor, mortgaged 

An agreement with or by a minor is voidCASE-Mohri bibi v/s Dharmdas Ghosh.  2nd CASE-Shyam lal v/s Piaray lal- Minor sold the shop but it could not be regd. courts said even money cannot be reclaimed .  Contract for necessaries of life Minor’s contract for his benefits-Robert v/s Grey, minor’s contract with billiard player. 

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Contract by parents or guardian of the minorRaj Rani v/s Premadip Pictures- a minor girl ,artist ,agreement with theatre company, later on co. employed other girl, courts declared , it is not for benefit of minor . Minor’s contract cannot be ratified on his becoming major- Raghwa v/s Shriniwas- a minor gave a promissory note, on becoming major he gave another note which was declared void by courts as contract cannot be ratified on becoming major.

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Doctrine of estoppel does not apply against minor. Minor as an agent. Minor as a partner. Minor as a shareholder. Surety liability for minor. Position of minor in negotiable instrument. Minor as a joint promisor. Liability of minor for torts. Minor cannot be declared insolvent.

 Acc.

To section 12- “ a person 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 it and forming a rational judgement as to its effects upon his interests.”

 Idiot-born

fools not having mental capacity.  Lunatic-person mentally affected due to age, illness or accident.  Drunken or Delirious person A senile person-due to ageeffect.

Alien

enemy. Foreign sovereigns and ambassadors. Convicts. Insolvency.