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CAPACITY

CAPACITY TO
TO
CONTRACT
CONTRACT
Meaning & Definition…
Persons disqualified from
entering into the contract…
MINOR
Rules relating to an
agreement with a minor
• First rule- law protects minors
against their own inexperience &
against the possible improper designs
of those more experienced
• Second rule-the law should not cause
unnecessary hardship to persons who
deal with minors
Minor’s Agreements
2.No Ratification – minor cannot ratify the
agreement on attaining the age of majority which
he has entered into in the age of minority. An
agreement with a minor cannot be ratified even
after he attains majority.

3.No Estoppel - minor can plead minority to avoid


contract.
X, a minor borrows money by saying that he is a
major.
4. A minor is not liable to restore the property or
goods.
Minor can be compelled :
• If goods are traceable in his possession.
If minor has sold the goods then nothing can be
claimed.

5. No specific Performance – A minor’s contract


being absolutely void, there can be no question of
the specific performance of such a contract.
• A minor is liable to pay for his necessaries
supplied or services rendered to him whom he is
legally bound to support.
Minor’s Liability for
necessaries …
• Necessaries is not confined to food,
clothing & shelter but it also includes
articles or services which are
reasonably necessary for a minor
suitable to his conditions in life … a
watch or a bicycle may be necessary
for a minor.
Following are considered
as necessaries …
• For saving his property from sale in
execution.
• For marriage of a minor.
• For marriage of his sister.
• For shradh ceremonies of the ancestors of
the minor.
• For rent of house taken by minor for the
purpose of studies.
Following are not
considered as necessaries …
• Cigar & tabacco.
• Refreshment for entertainment.
• A silver gift
The minor would not be personally liable for
reimbursement of necessaries, however his
property is liable for reasonable price for
necessaries.
• The minor is only liable to reimburse
only the reasonable cost of goods
supplied to him & not the price
agreed upon.
• The fact that minor was actually in
need of goods is to be proved by the
supplier of the goods.
• A loan taken by a minor to purchase
the necessaries also binds his
property & is recoverable by the
lender.
Persons of UNSOUND
MIND…
Unsoundness may be
categorized as:
Persons disqualified from
contracting
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