Question 1 (c)
Minor who borrowed by falsely representing his age
9 marks
- Time to write
- About 18 minutes
- Topic
- Capacity: minors
- Notes
- Crux notes
Question
Question 1 (c) · 9 marksAniruddh, a minor, falsely represents himself to be a major and enters into an agreement with Ishaan and borrowed from him a sum of Rs. 16,00,000, to be paid within the next five years in five equal annual instalments, including interest thereof at 18% p.a. From the money received, the minor purchases a second-hand sports car for Rs. 12,00,000 and spends what remains on a pleasure trip to Bangkok. Due to Aniruddh's non-recovery and default in instalment payments, Ishaan sues him to recover the original sum and the interest. Can he succeed? Decide this case and discuss the provisions relating to a minor's agreement.
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
- DecideA case problem: state the rule and its section, apply it to these facts, then answer in one line (yes or no, and why).
Write it in this order
- Read the facts; underline who did what, and the exact question 1 min
- 1 Provisions relating to a minor's agreement 5 marks 9 min
- 2 Application to the facts 3 marks 6 min
- 3 Decision 1 mark 1 min
- Check: section named, answer stated in one line 1 min
Short on time? Trim steps 1 and 2 evenly rather than skip one: each is capped at its own marks. End with step 3 in a line or two.
Try it first. About 18 minutes for 9 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.
Provisions relating to a minor's agreement.
- Void ab initio. A minor is not competent to contract (s. 11), so an agreement with or by a minor is void ab initio, that is, from the start (in the leading case the contract was void and the minor was not liable to pay anything to the lender).
- No ratification on attaining majority.
- No estoppel. A minor may always plead minority, even where he obtained a loan by falsely representing himself to be of full age.
- Restitution. If he has not spent the money, he may be asked to repay it; but he is not liable for any amount he has already spent, even though it was received by fraud.
- Necessaries supplied to a minor are recoverable from his property (s. 68), but a loan for luxuries is not.
- No specific performance of a minor's agreement.
Application. Aniruddh's loan agreement with Ishaan is void ab initio despite his false representation of majority; he is not estopped from pleading his minority. The promise to repay ₹16,00,000 in instalments with interest at 18% p.a. cannot be enforced, so neither the principal nor the interest is recoverable as a debt. The sports car and the pleasure trip are luxuries, not necessaries. The money has been spent (₹12,00,000 on the car and the rest on the trip), and the equitable remedy of restitution does not make a minor liable for money he has spent. At most, the court may order him to restore the car, the benefit still in his hands, since restitution reaches what remains with the minor.
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.
Decision. Ishaan cannot succeed in recovering the original sum or the interest from Aniruddh.
Where the 9 marks sit
| # | Component | Marks |
|---|---|---|
| 1 | Provisions relating to a minor's agreement | 5 |
| 2 | Application to the facts | 3 |
| 3 | Decision | 1 |
| Total | 9 |
Report a problemopens an email to admin@getkunji.com with the question ID7358-Q1calready filled in.