Capacity to Contract Questions and Answers

Q: Which of the following statements is true as to Minor's Contract under the Contract Act, 1872 ?

The true statement is that a minor's contract cannot be validated even after he attains majority.In Mohori Bibee v. Dharmodas Ghose (1903) the Privy Council held that an agreement with a minor is void ab initio under sections 10 and 11 of the Contract Act. Since a void agreement is a nullity, it cannot be ratified when the minor comes of age.For the same reason it cannot be enforced after majority, the minor is not liable to pay compensation, and the minor need not repay money advanced to him under it; Mohori Bibee also refused to order the minor to refund the mortgage money.

Q: A minor is not competent to enter into a valid contract. A minor may be partner by limited liability. Minor as a party to the agreement the partnership deed is :

A partnership deed with a minor as a party is a void contract as to him.Since Mohori Bibee v. Dharmodas Ghose (1903), a minor's agreement is void ab initio. Accordingly, Section 30 of the Indian Partnership Act, 1932 provides that a minor cannot be a partner, though he may be admitted to the benefits of partnership with the consent of all the partners, with his liability limited to his share.The agreement is not voidable, since a void agreement cannot be ratified or avoided, and 'beneficial contract' is not a legal category. Admission to benefits is a status the Act allows, not a contract by the minor.

Q: Claim for necessaries of life supplied to a minor under section 68 of Indian Contract Act

The claim can be enforced against the minor's property or estate.Section 68 of the Indian Contract Act provides that a person who supplies a minor with necessaries suited to his condition in life is entitled to be reimbursed from the minor's property. The liability is of the property, not of the minor.A minor's agreement is void (Mohori Bibee vs Dharmodas Ghose), so he is not personally liable, even on attaining majority. The guardian is not made liable by Section 68. And because the supplier does have a remedy against the property, 'cannot be enforced at all' is wrong.

Which of the following statements is true as to Minor's Contract under the Contract Act, 1872 ?

A.It can be enforced after he attains majority
B.Minor is liable to pay compensation after he attains majority
C.It cannot be validated even after he attains majority
D.Minor is liable to repay the amount under the contract to the opposite party.

Exam Year(s)

MH SET - 2020, SET Exam - 2020,

Answer: C

The true statement is that a minor's contract cannot be validated even after he attains majority.

In Mohori Bibee v. Dharmodas Ghose (1903) the Privy Council held that an agreement with a minor is void ab initio under sections 10 and 11 of the Contract Act. Since a void agreement is a nullity, it cannot be ratified when the minor comes of age.

For the same reason it cannot be enforced after majority, the minor is not liable to pay compensation, and the minor need not repay money advanced to him under it; Mohori Bibee also refused to order the minor to refund the mortgage money.

Discuss in Forum

A minor is not competent to enter into a valid contract. A minor may be partner by limited liability. Minor as a party to the agreement the partnership deed is :

A.Valid contract
B.Void contract
C.Voidable contract
D.Beneficial contract

Exam Year(s)

MH SET - 2025, SET Exam - 2025,

Answer: B

A partnership deed with a minor as a party is a void contract as to him.

Since Mohori Bibee v. Dharmodas Ghose (1903), a minor's agreement is void ab initio. Accordingly, Section 30 of the Indian Partnership Act, 1932 provides that a minor cannot be a partner, though he may be admitted to the benefits of partnership with the consent of all the partners, with his liability limited to his share.

The agreement is not voidable, since a void agreement cannot be ratified or avoided, and 'beneficial contract' is not a legal category. Admission to benefits is a status the Act allows, not a contract by the minor.

Discuss in Forum

Claim for necessaries of life supplied to a minor under section 68 of Indian Contract Act

A.cannot be enforced at all
B.can be enforced against minor personally on attaining majority
C.can be enforced against the minor's property or estate
D.can be enforced against the guardian if any, of the minor

Exam Year(s)

Tripura Public Service Commission - 2019,

Answer: C

The claim can be enforced against the minor's property or estate.

Section 68 of the Indian Contract Act provides that a person who supplies a minor with necessaries suited to his condition in life is entitled to be reimbursed from the minor's property. The liability is of the property, not of the minor.

A minor's agreement is void (Mohori Bibee vs Dharmodas Ghose), so he is not personally liable, even on attaining majority. The guardian is not made liable by Section 68. And because the supplier does have a remedy against the property, 'cannot be enforced at all' is wrong.

Discuss in Forum

Which of the following statements are true ?

(i) Minor's contract can be ratified on attaining majority.
(ii) Minor's contract cannot be ratified on attaining majority.
(iii) Minor's contract can be ratified jointly by both the parties to the contract.
(iv) Minor is not liable under minor's contract.

A.(i) and (iii)
B.(ii) and (iv)
C.(i) and (ii)
D.(ii) and (iii)

Exam Year(s)

UGC NET - 2012,

Answer: B

Statements (ii) and (iv) are true, so (B) is correct. In Mohori Bibee v. Dharmodas Ghose (1903) the Privy Council held that a minor's agreement is absolutely void, which means that it cannot be ratified when he reaches majority, so statement (ii) is true and statement (i) is false. A minor is not personally liable under a contract he makes, so statement (iv) is true. Statement (iii) is false, because a void agreement cannot be ratified by anyone. Options (A), (C) and (D) each contain statement (i) or (iii), which are false.

Discuss in Forum

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Capacity to Contract Questions and Answers

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