Question 1 (c)
Inadequate consideration; a minor's agreement is void
12 marks
- Time to write
- About 24 minutes
- Notes
- Crux notes
Question
Question 1 (c) · 12 marks"Insufficiency of consideration is immaterial, whereas an agreement without consideration is void" Comment, citing exceptions to this statement.
An agreement with the minor is absolutely void. Comment upon this, citing the necessary case law. (6+6=12)
Reworded from the university paper; the task is the same. The original paper belongs to the University of Delhi. See DU's question bank.
Before you write
Read off the question and its marks
Read from the question
- (i)–(ii)2 items, each marked on its own: give each its share.
- CommentA statement to judge: take a stand on it in your first line, and come back to it at the end.
Write it in this order
The parts stand alone: start with the one you are surest of.
- Read; underline the asks; jot your points 2 min
- 1 (i) Inadequacy immaterial; no consideration void 3 marks 5 min
- 2 (i) Exceptions 3 marks 5 min
- 3 (ii) Minor's agreement void ab initio, with Mohori Bibi 4 marks 7 min
- 4 (ii) Consequences 2 marks 3 min
- Check: every ask answered, key terms underlined 2 min
Short on time? A few lines on every part beat a full answer to one: each part is capped at its own marks.
Try it first. About 24 minutes for 12 marks. Write it out, then open the solution.
Solution
Hover or tap a marked figure, like 72,000, to see how it is made and where else it appears.
(i) Comment. The statement is correct. Explanation 2 to section 25 of the Indian Contract Act, 1872 provides that an agreement to which the promisor's consent “is freely given is not void merely because the consideration is inadequate”, though the court may take the inadequacy into account in deciding whether consent was free. A horse worth ₹1,000 sold for ₹10 with free consent is a valid contract (illustration (f)). But an agreement made without any consideration is void under section 25: a bare promise to give ₹1,000 is void (illustration (a)).
1Sixteen-year-old Dev, school bag still on, signs for a new cycle on credit.
Section 11A person who has not attained the age of majority (18 years) is not competent to contract.
2In court, the seller throws up his hands: the law never counted Dev's signature.
Agreement is voidThe minor cannot be made to repay as on a contract.
3Dev had claimed to be older—so the judge makes him return the cycle he still holds, and nothing more.
RestitutionWhere a minor obtains property or money by falsely representing himself to be a major, the court may, on equitable grounds, order him to restore what he still holds; he is not liable for any amount he has already spent.
Exceptions. An agreement without consideration is valid in these cases:
- a written and registered promise made out of natural love and affection between near relatives (s. 25(1)); a father's registered promise to his son (illustration (b));
- a promise to compensate for past voluntary services; A returns B's lost purse and B promises ₹50 (illustration (c));
- a written, signed promise to pay a time-barred debt (s. 25(3)) (illustration (e));
- a completed gift (Explanation 1).
(ii) Comment. The statement is correct. A minor is not competent to contract (s. 11), so an agreement with or by a minor is void ab initio. The leading case is Mohori Bibi v. Dharmo Das Ghose (1903): a minor mortgaged his house to a money-lender for ₹20,000 and received ₹8,000; the mortgage was held void and the minor was not liable to repay anything. It follows that the agreement cannot be ratified on attaining majority, and a minor may plead minority even after falsely representing his age; a minor may, however, be a beneficiary under a contract, and his property is liable for necessaries supplied to him.
Where the 12 marks sit
| # | Component | Marks |
|---|---|---|
| 1 | (i) Inadequacy immaterial; no consideration void | 3 |
| 2 | (i) Exceptions | 3 |
| 3 | (ii) Minor's agreement void ab initio, with Mohori Bibi | 4 |
| 4 | (ii) Consequences | 2 |
| Total | 12 |
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