LEGAL VALIDITY OF MINOR’S AGREEMENT IN INDIA

By

Name: Arpita Tiwari

Roll. No: I015

Name of the program: BA LLB (Hons)

SEMESTER-VI

NARSEE MONJEE INSTITUTE OF MANAGEMENT STUDIES

KIRIT.P, MEHTA SCHOOL OF LAW, HYDERABAD

Date of submission: 28th of Feburary, 2023

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 I NTRODUCTION

Contract is an agreement which is legally binded on one or more parties and it is a valid
agreement which is enforceable by law. All agreements are not contracts but all contracts are
agreement provided under section 10 of the Indian Contract Act, 1872. Only the agreement
where the parties entered into the contract and the agreement has been signed by the parties who
have a legal capacity to do so that will be observed as a contracts. Through this article we will
understand the competency to enter into a valid contract and their essentials. Further we will
discuss about the minor’s agreement and the validity of the minor’s agreement. In addition the
researcher will going to discuss about the provisions of the Indian Contract Act, 1872 and the
case laws related to minor’s agreement.

ESSENTIALS OF VALID LEGAL AGREEMENT

There are some requirements of valid legal agreement which need to be fulfils:

1. There should be a proper offer and proper acceptance

2. The parties will enter into a contract with free consent
3. There must be a legal consideration and a legal object.
4. The Contracting parties must be legally capable of entering into a contract.

WHO IS A MINOR?

A minor is a person who has not attained the legal age of majority according to the provision
mentioned under the Indian Contract Act, 1872. A minor have no responsibility against his or her
own conduct. A minor person has also provided the same legal rights like an adult but they have
not reached at the age of majority build on the norms of authority where in which they occupy.

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A minor is a individual who has obtained all the rights and responsibilities of an adult but hasn't
yet reached the age of majority. In United States the legal age of drinking is 21 years and if any
person has attained the age of 18 years he will be deemed as a minor in alcohol regulations. As
per the Indian Majority Act, 1875 the average age of majority is 18 years old. If a guardian is
appointed for a minor's person or property, the minor reaches the age of 21.

MINOR’S AGREEMENT

As per the provision mentioned under the Indian Contract Act, 1872 section 11 which defines the
word “qualified” includes three essential things i.e;

 Any individual who has not attained the legal age of majority which is 18 years.
 The individual who is of unsound mind cannot make a contract.
 The individual is not prohibited by any laws to which he is subject. Therefore, a minor
lacks legal capacity to enter into a contract.

Age of majority: As per the Indian Majority Act, 1875 the average age of majority is 18 years
old.

Exception: In certain conditions minor’s age will be considered as 21 years they are:

1. In spite of the fact that the legal age of majority is 18 years but when the guardian has
been appointed for the minor’s person or property by the Guardianship and Wards Act of
1890 then the age will be considered as 21 years.
2. Where the minor's property has been transferred to the supervision of the court of words.

CERTAIN NORMS PERTAINING TO CONTRACTS WITH MINOR PARTIES

1. A contract entered by a minor is void ab intio and the minor is not liable for his non-
performance of the contract.

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 2. A minor's dishonest characterization has no effect on the position of the agreement. The
contract is still null and void.
3. Unless a law expressly allows it, the juvenile cannot confirm the contract after reaching
majority.
4. There is no such provision in Indian Law where a minor can ratify his performance in the
contract.
5. A juvenile cannot be declared insolvent.
6. Minor guarantee: A contract of guarantee in support of a juvenile is valid. A juvenile, on
the other hand, cannot be a surety in a guarantee contract. This is due to the fact that the
surety is eventually liable under a guarantee contract, whereas a minor individual cannot be
personally accountable.
7. Minor as a trade union member: The individual who is over the fifteen years of age can be
allowed to become a member of a registered labor organization if the rules of trade union
allow it. This type of member has all of the privileges of a member.

THE CONSEQUENCES OF MINOR’S AGREEMENT

This remarkable ruling can be summarised as follows: there is no contractual or tort liability: A
minor is unable to make a consent, so any agreement made by a minor is null and void and
cannot be applied.

Rule of Estoppel: It is a universal real evidence doctrine that bar a party from making an
allegation that contradicts what he has already stated. The court ruled that the doctrine of
estoppel does not apply when the person involved has been aware of the existence; in this case,
the defence attorney knew that the plaintiff was a minor. This legislation therefore does not
impose.

Restitution of benefit: According to Section 64 of the Indian Contract Act, if a party who holds
the ability to terminate a contract does so, the other party is not obligated to carry out its
contractual duties. This is correct for voidable contracts, but because a minor's agreement is null
and void, he cannot be required to make repayment to the lender.

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 SOME EXCEPTIONS TO THE RULES WHICH ARE IN GENERAL APPLICABLE

WHEN THE JUVENILE HAS PERFORMED HIS RESPONSIBILITIES : The minor can perform the
role of both i.e; promisee and the promisor in the contract but he cannot be both. If the teenage
has entered into a contract where he is the promisee and fulfilled his responsibility according to
the contract or the agreement and then other part has not performed his part then he or she may
be entitled to enforce that contract as a promisee.

AN AGREEMENT MADE ON BEHALF OF THE MINOR ’S BENEFITS BY THE MINOR ’S

CARETAKER : If the other party breaches its assurance, a minor may take legal action against it.
The guardian of the minor's property decided to sign an insurance contract on behalf of her son
in the case of Great American Insurance v. Madan Lal. When the valuables were disrupted and
the minor demanded remuneration, the insurance denied, asserting that an agreement with the
minor was invalid. However, because he was delinquent, the judge upheld that this agreement
was valid, and he is now obligated to pay compensation for damages.

As per the Indian Apprenticeship Act the caretaker of the minor can enter into a contract or
agreement on behalf of the minor that is a contract of apprenticeship.

NECESSITIES PROVIDED TO A MINOR : If an individual who is unable to enter into a contract is

provided with necessities of life by some other person, the individual who provided is permitted
to renumeration from the assets of such unqualified person together with a child. However, if the
minor does not own any assets, he cannot be forced to repay the other person.

CASE LAW

MOHRIBIBI V. DHARMODAS GHOSH (1903)

FACTS OF THE CASE

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Dharmodas Ghosh, the plaintiff, lent a juvenile Rs. 20,000 while he was still a minor by vowing
his personal items to the defendant, a moneylender. The defendant's attorney became aware of
the complainant's age at that point. Later, the plaintiff agreed to pay Rs 8000 but not paid the
remaining amount. He sued the defendant on behalf of his next friend and existing legal
guardian, the plaintiff's mother, asserting that since he was a youngster when the contract was
created, he is not bound by the agreement.

JUDGEMENT OF THE COURT

Minors are not allowed to enter into contracts under section 11 of the Indian Contract Act of
1872, the privy council ruled in its ruling. Section 11 of the Indian Contract Act of 1872 states
that any person of the age needed by the judgement to which they are subject is competent to
contract. Any agreement with a minor is thus null and void from the start. A valid contract is
defined as one that meets all of the situations listed in section 11.

The court also ruled that the agreement with the minor is null and void. Because a minor cannot
enter into a contract, the mortgage was declared null and void. Because the minor is not
compelled to keep any promises he made in connection with the contract, he cannot be forced to
repay the funds awarded to him. Furthermore, the minor is not protected by estoppel legislation.

IS IT POSSIBLE FOR A MINOR TO BE A PARTNER?

According to the requirements of section 11 of Indian Contract Act the parties can enter into a
contract when they have attained the majority age but as per section 30 of the partnership act
which provides an exception that with the consent of all the partners the minor is acknowledged
to take the partnership’s benefit’s for the specific period of time. However, he will bear no
responsibility for his actions.

IS IT POSSIBLE FOR A MINOR TO ACT AS PRINCIPLE OR AGENT?

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A minor is unable to serve as a principal due to Section 183 of the Indian Contract Act, which
states that in order to be a principal, a person must be of the age of majority and of sound mind.
Furthermore, since a juvenile lacks the capacity to enter into a contract, he cannot be hired as an
agent. Nevertheless, a minor may serve as an agent in accordance with the provisions of section
184, but the principal will be constrained by the minor's actions but will not be legally
responsible.

C ONCLUSION

As per the section 11 of the Indian Contract Act, 1872 which clearly states that the minor is not
permitted to enter into a contract until and unless he attained the legal age of majority that is 18
years of age. The contract with the minor is void ab intio from the beginning. If the minor has
done any contract with any individual and after some time when he attained his or her majority
then he or she is not responsible to ratify that particular contract which he has entered in his
minority. A void contract cannot become legally valid later because approval pertains to a
moment when the individual was still a minor. The individual can make a new contract by
following the essentials of the contract and by attaining the majority age.

In addition to, a minor's agreement cannot be particularly requested to be executed because doing
so would imply carrying out a complete agreement. However, a child will only be made
responsible for claims for necessities.

REFERENCES

1. Agreement with minor https://www.toppr.com/guides/business-laws-cs/indian-contract-

act-1872/agreement-with-minor/#:~:text=Agreement%20with%20Mi
2. Validity of the minor’s agreement https://www.a-and-s-jurisprudentia.com
3. What is the position of minors under the Indian Contract Act of 1872?
https://lexforti.com/legal-news/what-is-the-position-of-minor-under-indian-contract-act-
1872/#CONCLUSION

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4. Minor’s Capacity To Enter Into A Contract https://blog.ipleaders.in
5. Contract with Minor: Time ripen for change or not.
https://www.legalserviceindia.com/legal/article-4937-contract-with-minor-time-ripen-for-
change-or-not.html.