State the rules regarding a minor’s agreements.

Rules regarding a minor’s agreements are.

As indicated by Section 3 of the Indian Majority Act 1875, as changed by the Majority (Amendment) Act, 1999, a man domiciled in India, who is under 18 years old is minor. Along these lines, a man who has finished 18 years old is a major

Minor’s Agreements: 

The law identifying with minor’s understandings can be summed up as takes after.

An agreement with a minor is void: 

A concurrence with a minor is void from the earliest starting point and void totally. At the end of the day, a concurrence with a minor does not make any legitimate rights and commitments between the concerned gatherings. On account of Raj versus Ram a minor sold his home for a moneylender to secure a credit of 20,000 and got 8,000 from the mortgagee.

The mortgagee recorded a suit for the recuperation of his home loan cash and for the offer of the property if there should be an occurrence of default. It was held that an agreement by a minor was completely void as against him and, in this way, the mortgagee couldn’t recoup the home loan cash.

Likewise, he couldn’t offer the minor’s property held under home loan.A minor can’t be requested to make amends for an advantage got under a void agreement. The court, may, be that as it may, in specific cases arrange the minor to restore the advantage acquired under the agreement if minor argues minority and needs to wipe out the agreement.

The rule of estoppel does not apply to a minor:

A minor is not bound by his misrepresentations. If a minor enters into a contract by fraudulently representing himself to be a major, he cannot be prevented from pleading minority as defence. The rule of estoppel cannot be applied against the minor. But if anything is traceable in the hands of the minor, out of the proceeds of the contract entered into by the minor by falsely -representing himself to be major, the court may direct the minor to restore that thing to the other party.

A minor’s agreement cannot be ratified by minor on his attaining majority:

Ratification implies approval or confirmation. A minor, on attaining majority, cannot confirm an agreement made by him during minority. This is because ratification relates back to the date of making of the contract and, therefore, a contract which was void from the very beginning can not be made valid by subsequent ratification.

Minor’s liability in tort:

The term ‘tort’ implies a civil wrong for which a suit can be filed by the affected party. If a minor enters into an agreement by misrepresenting his age, he cannot be sued either for damages for breach or in the form of damages for tort . A minor is liable for his tort, unless the tort is in reality a breach of contract. For example, a minor hired a horse for riding and injured it by overriding. The minor was not held liable (ravi vs ranjeet).

Beneficial contracts:

A minor can be a beneficiary or promise. In other words, if a contract is beneficial to a minor, it can be enforced by him. In Raghava  vs. Qamar, A executed a mortgage in favor of B (a minor) who advanced a certain sum of money to A. The court, in this case, held that the mortgage is enforceable by minor as the,transaction was for his benefit.

Minor’s liability for necessities:

Section 68 of the Indian Contract Act, provides that if a person, incapable of entering into A contract, or any one whom he is legally bound to support, is supplied by another person with supplies is entitled to be reimbursed from the property of such incapable person. So, if someone supplies the necessities to a minor or his dependents, minor’s property is liable.

Position of minor’s parents or guardian:

Minor’s contracts do not impose any liability on his parents or guardian even if the contracts are for necessaries. However, when the minor acts as an agent of his parents or guardian, they can be held liable for his acts.

Minor agent:

A minor can act as an agent but he will not be personally liable for any of his acts. The principal will be liable to the third parties for the acts of the minor which he does in the ordinary course of dealings.

Minor partner:

Section 30 of the Partnership Act provides that a minor may by admitted to the benefits of the partner Ship with the consent of all other partners. His liability is limited to his share in the partnership. He cannot take part in the management.

Minor as an insolvent:

A minor cannot be declared insolvent. This is so because all agreements with a minor are void. Moreover, the minor is not personally liable for any debt incurred during the period of his minority.

Minor shareholder:

A minor cannot become shareholder in a company since he is incompetent to enter into a contract. A company can also refuse to register, transfer or transmission of shares in favor of a minor unless the shares are fully paid. In case a minor inherits certain shares, he may become a shareholder acting through his lawful guardian.

Minor under Negotiable Instruments Act:

Minor can draw or negotiate negotiable instruments . But he incurs no personal liability in such cases. A negotiable instrument drawn in favor of a minor can be enforced by him. A minor can be a promise or payee. He can also become an endorse by transfer of a negotiable instrument.