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.”
of sound
Person disqualified by
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
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.
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.
Foreign sovereigns
and ambassadors.