NOTES


CA-Foundation > Business Laws > The Indian Contract Act, 1872 - Capacity to Contract (Old & New)

"Even if a minor is not competent to a contract, nothing in the Contract Act prevents him from making the other party bound to the minor". Comment.



Ans.
Yes. A minor can be a beneficiary and any contract which is for the benefit of the minor can be enforced by him.
Minor can be a beneficiary
The Court protects the rights of minors. Accordingly, any contract, which is of some benefit to the minor and under which he is required to bear no obligation, is valid. In other words, a minor can be a beneficiary e.g., a payee, an endorsee or a promisee under a contract. Thus, money advanced by a minor can be recovered by him by a suit because he can take benefit under a contract. Generally contracts for the benefits of minor are made by guardian on behalf of the minor. It should be however be noted that all contracts made by guardian on behalf of a minor are not valid. For example, a guardian cannot empower himself to bind the minor by a contract for the purchase of immovable property unless such contracts are sanctioned by the Court.


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Notes of The Indian Contract Act, 1872 - Capacity to Contract (Old & New)



  1. Who are the persons disqualified to entered into contract?
    see in detail

  2. Wamika is the wife of Habib, who is lunatic, purchases a diamond set of ₹ 10 lacs from Beauty Jeweller on credit. Referring to the provisions of the Indian Contract Act, 1872, decide whether the Beauty Jeweller is entitled to claim the above amount from the property of Habib.
    see in detail

  3. Xavier, a minor was studying in M.Com in a college. On 1st July, 2005 he took a loan of ₹ 10,000 from Baadal for payment of his college fees and to purchase books and agreed to repay by 31st December, 2005, Xavier possesses assets worth ₹ 2 lakhs. On due date Xavier fails to pay back the loan to Baadal . Baadal now wants to recover the loan from Xavier out of his (Xavier's) assets. Referring to the provisions of the Indian Contract Act, 1872 decide whether Baadal would succeed.
    see in detail

  4. Maadhav supplied necessaries of life to the wife and children of a lunatic. Can Maadhav recover the payment? If so, from, whom?
    see in detail

  5. "Even if a minor is not competent to a contract, nothing in the Contract Act prevents him from making the other party bound to the minor". Comment.
    see in detail


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