NOTES


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

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



Ans.
Maadhav can recover the payment out of the property, if any, of the lunatic.
Minor’s liability for necessaries

A minor is not personally liable for the necessaries supplied to him but his property is liable for payment to the other person.

The case of necessities supplied to a minor is governed by Section 68 of the Contract Act which provides that "if a person, incapable of entering into a contract, or any one whom he is legally bound to support, is supplied by another person with necessaries suited to his condition in life, the person who has furnished such supplies is entitled to be reimbursed from the property of such incapable person”.

Illustration: A minor is ill and needs urgent medical attention. N, a neighbour, arranges for his treatment and spends his money. He is entitled to be paid out of minor's property.

Necessaries would include such items as food, clothing, accommodation, expenses on education, medical treatment, funeral ceremonies, etc. and not items of comfort or luxury. It would depend on socio-cultural status of the minor.


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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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