Who is a Minor ?
According to Sec. 3 of Indian Majority Act, 1875, every person domiciled in India shall be deemed to have attained his majority when he shall have completed his age of 18 years, and not before. But in the following cases, he attains majority when he completes 21 years:
(a) where a guardian has been appointed to the minor under the Guardianship of the Court of Wards; or
(b) where the superintendence of a minor's property is assumed by a Court of Wards.
The two fundamental rules governing minor's agreements are:
(1) The law protects infant persons, preserves their rights and estates, and excuses their negligence and assist them in their pleadings; the judges are their counsellors, the jury their servants and law is their guardian; and
(2) In pursuing this object the law should not cause any unnecessary hardship to a person who deals with a minor. Thus it said, "a minor binds others, but is never bound by others."
Position of a Minor in Contract Act.
1. An agreement with a minor is absolutely void: An agreement with or by a minor is void from the very beginning. However, nothing prevents a minor from becoming a promisee. A minor is incapable of making an instrument but is not incapable of becoming a payee or endorsee (Goekda Latcharao v/s Vishwandham Bhowayya, 1956, Andhra 182). All those contracts to which a person incompetent to contract are void, as against him, but the minor can be beneficiary under such contracts.
2. No ratification after attaining majority: As the contract entered with a minor is void from the very beginning, consideration which passed under the earlier contract cannot be implied into the contract which the minor enters on attaining majority. If the parties to the agreement desire, a new contract can be made when the minor attains majority provided it is supported by fresh consideration.
However, the service rendered at the request of the minor during his minority and still continues the same service even after his attaining majority, form a good consideration in favour of the person who rendered the services by himself.
3. Minor can be a beneficiary: There is nothing which debars a minor from becoming a beneficiary or a promisee in a contract. Any such contract may be enforced at his option, but not at the option of the other party.
4. If a minor has received any benefit under a void agreement, he cannot be asked to return it: Sec. 65 of the Contract Act which provides for restitution in case of void agreement does not apply to a minor. This was stated in the case - Mohori B vis Dharmodas Ghose-1903 Cal. 539.
5. A minor can always plead minority: A minor can always plead minority and is not stopped to do so even where he enter into some contract by falsely representing his age.
6. No specific performance of the agreements entered by the minor: There can be no specific performance of the agreement entered into by him, as such agreements are void. In cases when monetary compensation as a remedy against breach of contract considered insufficient, the court may accept the request for specific performance.
As an agreement entered into with a minor is void from the very beginning-no demand for specific performance can be made. But the minor can demand for specific performance if it is in his favour.
7. Contract by minor's guardian on behalf of minor: contract entered into on behalf of a minor, by his guardian can be specifically enforced by the minor provided the contract is made (i) Within the scope of authority of the guardian; (ii) For the benefit the minor; and (iii) The guardian possesses the capacity to enter into a valid contract.
However, in the following cases even the guardian of minor has no right to enter into any contract on behalf of the minor:
(a) buying or selling of permanent assets on behalf of the minor, without the permission of the court, and
(b) Any agreement to provide employment to the minor.
8. Minor and a Contract of Partnership: According to Sec 30 of the Indian Partnership Act, 1932, a minor may be admitted to benefits of an already existing partnership with the consent of all the partners. But he will not be liable for any loss or liability of the firm.
9. Minor as insolvent: A person is adjudged as an insolvent who lost his capacity to pay the debts. Since a minor is incapable of contracting any debts, he cannot be adjudged as an insolvent.
10. Minor can be an agent: According to Sec. 184 of Indian Contract Act, a minor may be appointed as an agent and can bind the principal for his acts; without any personal liability on his part.
11. Liability of parents for minor's contract: The parents are not liable for any contract made by him, even if it was made for the supplies of necessities for his life. Where the minor is acting as an gent on behalf of his parents, they shall be liable under the contract.
12. Minor and Negotiable Instrument Act: Under the provisions of this Act, a minor can write, accept, transfer or endorse a bill of exchange like cheques, promissory notes, etc. but will not be liable for, in case these instruments are dishonoured. But the liability of other parties on behalf of the minor will exist.
13. A minor may be a shareholder: As per provisions of Indian Companies Act, 1956, a minor may be a shareholder for fully paid-up shares.
14. Guarantee for a minor: If a person stands surety for a minor, the guarantor will be liable to the creditor and at the same time the minor shall not be liable to the guarantor. The person stands guarantor for a minor is taking a risk for himself.
15. Minor's agreements for necessaries in life: Under the provision of Sec. 68 of the Contract Act, a minor is liable to pay out of his property for all necessaries supplied to him by the other. Necessaries may include necessary goods; services; loans; etc. This provision is subject to the condition that such necessaries were supplied by the lender himself. However, the minor shall not be personally liable to the lender.
16. Minor and Sale of Goods Act: A minor is not liable under the Sale of Goods Act. If he enters into any agreement to buy or sell, he shall not be bound by the contract.
17. Minor as a Joint promisor: In a joint promise made into between certain number of persons of majority age, there will be no liability on the part of the minor but the co-promisors shall be bound by the contract.
Conclusion: A minor is protected by the law for his own benefits. At the same time a person, knowingly or unknowingly enters into any agreement with a minor is taking a risk, and he will be bound by the contract. At the same time there have been ruling of the courts that while pursuing this object, the law should not cause any unnecessary hardship to a person who deals with a minor. Minor can have no privilege to cheat people.
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