9/19/2020
BBA
BUSINESS LAW – LECTURE 11
CS.TEJPAL SHETH
EFFECT OF MINOR’S AGREEMENT
 Agreement by minor is void ab initio
 MohiribibiVs. Dharmodas
 An agreement for the benefit of minor is
enforceable by minor
 Validity of contracts by guardian
CAPACITY OF PARTY TO CONTRACT
 Meaning-legal ability
 Who are competent to contract ?
 Age of majority
 Sound mind
 Not disqualified by law
 Who are not competent to contract ?
 Minor
 Person of unsound mind
 Disqualified to enter into contract
MINOR’S LIABILITY FOR NECESSITIES
 Minor is not already in possession of such
necessities
 Liability of minor is only limited to his property
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PERSON OF UNSOUND MIND PERSON DISQUALIFIED BY LAW

Body When not authorized by its article

corporate or memorandum

Contract
entered -
Alien alien enemy With permission
enemy suspended
until war is
of central govt.

over

enter in to contract with

Convict permission of CG

TEST YOURSELF TEST YOURSELF

 Capacity to contract means-
a. the parties are financially sound to make contracts.
 Teji, a minor, broke his right leg in a football match. He b. the parties are physically able to enter into contracts.
engaged Curewell, a doctor to set it. Does the doctor
c. the parties are legally competent to enter into contracts.
have a valid claim for his services ? Give reason.
d. all of the above.

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TEST YOURSELF TEST YOURSELF

 Which of these is a not a "necessary" for a Minor?
 These two persons can enter into a valid contract-
a. Provision of education
a. one minor and a major person.
b. Provision of medical and legal advice
b. one minor and a person of sound mind.
c. husband and wife.
c. Provision of a house on rent for the purpose of
living and continuing his studies
d. one major person and an insolvent person.
d. Provision of alcoholic drinks.