As per Indian law, no person is competent to contract who is not of the age of majority according to the law to which he is subject,hence a minor is not competent to contract. This proposition is capable of two constructions: either, the minor is absolutely incompetent to contract, and the agreement of the will be void or,he is incompetent to contract, he will be not liable to the contract though the other party is, and there will be voidable contract. If the agreement is void the minor can neither sue nor be sued upon it,and the contract is not capable of ratification (Suraj Narain V.Sukhu Ahir 1928). If it is voidable, minor can sue upon it but can’t be sued by other party and the contract can be ratified after attaining majority. As per English law a contract with a minor is voidable while in Indian scenario it is void ab initio. In a landmark judgement Mohori Bibee V. Dharmodas Ghose: the plaintiff Dharmodar Ghose was a minor who mortgaged his property in favour of the defendant Brahmo Dutt. Brahmo Dutt was a money lender at the time of transaction the attorney acted on behalf of Brahmo Dutt has the knowledge that the Dharmodas wasa minor. Minor brought an action against money lender stating that he was a minor when the mortgaged was executed therefore it is void and should be cancelled. Money lender contended that, on the fraudulent misrepresentation of minor law of estoppel should be applied and also asked to refund the loan of 10,500.All the contention of defendant was denied by privy council stating that Dharmodas was minor at the time of agreement therefore there was no contract at all also the fact that he was minor was in the knowledge of the defendants agent. It was also observed that There can be no estoppels where the truth of the matter is known to both the parties, and their lordship hold that a false representation, made to a person who knows it to be a false, is not such a fraud as to takeaway the privilege of infancy.The divisional court held that minor who paid for goods and received and used can’t recover the money back. There are three kinds of agreement with infant: (1) Wholly void, not for theinfant’s benefit, (2) Valid, beneficial for infant and (3) Voidable.
MINOR’S AGREEMENT.
