Question 1 OR (c)

A minor's agreement is void ab initio; restitution

6 marks

Time to write
About 12 minutes
Topic
Capacity: minors
Notes
Crux notes

Question

Question 1 OR (c) · 6 marks

"An agreement with a minor is void ab initio" Discuss. Further, state what the provisions on restitution are in the case of a minor's agreements.

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

12 minfor 6 marks

Read from the question

  • DiscussTie the answer to the quoted statement: say what it means first, and come back to it at the end.

Write it in this order

  1. Read; underline the asks; jot your points 1 min
  2. 1 Void ab initio: s. 11, Mohori Bibi 2 marks 3 min
  3. 2 Consequences: no ratification, beneficiary, no estoppel 2 marks 3 min
  4. 3 Restitution 2 marks 3 min
  5. Check: every ask answered, key terms underlined 2 min

Short on time? Trim steps 1–3 evenly rather than skip one: each is capped at its own marks.

Try it first. About 12 minutes for 6 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.

Discussion. Under section 11 of the Indian Contract Act, 1872, a person who has not attained the age of majority (18 years) is not competent to contract. An agreement with or by a minor is therefore void from the very beginning. In Mohori Bibi v. Dharmo Das Ghose (1903), a minor mortgaged his house to a money-lender for ₹20,000, of which ₹8,000 was paid; the mortgage was held void and the minor was not liable to repay anything. The consequences are:

Picture itA minor's agreement is void ab initio; restitution

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.

  1. No ratification: a minor cannot ratify the agreement on attaining majority, since a void agreement cannot be ratified; a fresh promise after majority is itself void for want of consideration.
  2. Minor as beneficiary: a minor may accept a benefit, so a promissory note or mortgage in his favour can be enforced by him.
  3. No estoppel: a minor may always plead minority, even after falsely representing himself to be of full age.

Restitution in minors' agreements. Because the agreement is void, the minor cannot be made to repay as on a contract. But where 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: 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 obtained by fraud. Restitution stops where the benefit cannot be traced; it does not amount to enforcing the void contract.

Where the 6 marks sit

#ComponentMarks
1Void ab initio: s. 11, Mohori Bibi2
2Consequences: no ratification, beneficiary, no estoppel2
3Restitution2
Total6
Keyboard: ← → previous and next question, / search

Report a problemopens an email to admin@getkunji.com with the question ID1404-Q1cORalready filled in.