BUSINESS LAW

MINOR

According to Sec. 3 of the Indian Majority Act,

1875, a minor is a person who has not completed

eighteen years of age.

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In the following two cases, a minor attains majority after
twenty-one years of age.

•Where a guardian of a minor’s person or property has

been appointed under the Guardian and Wards Act, 1980,
(or)

•Where the superintendence of a minor’s property is

assumed by the Court of Wards.
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MINOR’S AGREEMENT
1. An agreement with or by a minor is void and
inoperative (Mohiri bibi vs Dharmodas Ghose).
2. He can be a promisee or a beneficiary.
3. No ratification on attaining the age of majority .
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4. If he has received any benefit under a void

agreement he cannot be asked to compensate or

pay for it.

5. He can always plead minority.

6. No Specific performance.
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7. Minor cannot enter into a contract of Partnership.

8. Minor cannot be adjusted insolvent

9. Minor’s liable for necessaries

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10. Minor can be an Agent

11. Position of minor’s parents

12. A Minor is liable in tort

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MINORS’ LIABILITY FOR NECESSARIES

•Suitable to the position and financial status of the

minor.

•Necessaries both at the time of sale and at the time of

delivery.
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Necessaries include,

 Necessary goods: Such as bread and clothes :

 Services rendered: It include education, training

for a trade, medical advice

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MINORITY DISAFFIRMANCE
 The contract may be manifested by words or actions.

 The contract must be disaffirmed in its entirely

 Disaffirmance must be timely.

 When a minor disaffirms a contract, all property that he or she has transferred

as consideration can be recovered

 A minor may disaffirm a contract at any time during minority or for a

reasonable time after the minor comes of age.

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MINOR’S AND PARENT’S LIABILITY

(1) One or more parent(s) co-sign the contract, and thereby assume

personal liability for its performance, even if their minor child

disaffirms the contract; and/or

(2) The minor child committed some wrongful act associated with the

contract at the direction of one or both parent(s).

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MINORITY EXCEPTIONS
 Misrepresentations regarding Age;

 When the minor has engaged in business as an adult;

 Courts permit disaffirmance but subject the minor to tort liability for his or her

misrepresentation;

 Some courts refuse to allow minors to disaffirm fully performed contracts

unless they can return all consideration received.