1. A wants to sell his car to B an 8-year-old boy for 5 Lakhs. Is the agreement valid? Give reason with
supporting case-law & statute.
Answer:
To perform a contract valid both offeror and offeree must be compatible to competent.
3 factors make competent, they are: 1) 18 years of age (Majority Act 1875) 2) Sound Mind and 3) Not
disqualified by law to which one is subject.
Here, A wants to sell his car to B an 8-year-old boy for 5 Lakhs. This agreement is not valid because B
is an eight-year boy. According to majority act 1875 a minor is one who has not completed his or her
18th year of age. So, B is a Minor and a minor can not be a capable to competent for perform a contract,
Capacity of parties is absent .
Supporting case: Mohori Bibi v. Dharmodas
In Mohori Bibi case the general rule was establish that a minor’s agreement is a void agreement and
mortgage money is not refundable because it was a void agreement declared by privy council.
As a Minor anyone can’t buy or sell. Section 11 of the contract act 1872 state that a minor or a person
of unsound mind or a person disqualified by las is in competent to enter a contract.
So, B can’t enter in a contract. It’s a Void agreement.
2. G a client of H (a lawyer) has been paying an unreasonable sum of money for his services. Is the
agreement valid? Give reason.
Answer:
This agreement is a void agreement. Because here the exact sum of money is absent that means it’s an
uncertain agreement.
An agreement must not be vague or not ambiguous.
Supporting case: Gunthing v. lynn