CAPACITY OF THE PARTIES

SECTION 11
A PERSON IS COMPETENT TO CONTRACT IF: He is of the age of majority, Who is of sound mind, and Not disqualified from contracting by any law in force in India

The following persons are not competent to contract

Minor Person of unsound mind Persons disqualified by any law to which they are subject

MINOR
According to Indian Majority Act, 1875: A minor is one who has not completed his/her 18th year of age. A person continues to be a minor until he attains 21 years; Where, a guardian of a minors property or person has been appointed under the Guardians and Wards Act, 1890; or The superintendence of minors property is assumed by a court of wards.

Doctrine of mutuality
It is not within the competence either of the manager of the minors estate or of the guardian of the minor, to bind the minor or the minors estate by a contract for the purchase of immovable property. As the minor was not bound by it, there was no mutuality, and consequently the minor could not obtain specific performance of the contract [Mir Sarwajan v. Fakhruddin Mohd Chowdhary ] A contract to purchase certain immovable property had been made by a guardian on behalf of the minor, and the minor sued the other party for a decree of specific performance to recover possession. His action was rejected.

 In todays life it is not desirable for law to adhere to the categorical declaration that a minors agreement is always void ab initio. A minor has to travel, to get his dress tailored, cleaned, to visit cinema halls, to deal with educational institutions and to purchase so many things for the facility of life and education. Hence, the new law is that if the contract is within the competence of the guardian and if it is for the benefit of the minor, it is specifically enforceable.

 Srikakulam Subramanyam v. Kurra Subba Rao In order to pay off the promissory note and mortgage debt of his father, the minor son and his mother sold a piece of land to the holders of the promissory note in satisfaction of the note. He paid off the mortgagee accordingly and the possession of land was given to them. Afterwards, minor brought an action to recover the land. It was held that he was not entitled to do so as the contract was for his benefit and had entered into by the guardian in his competency.

Effects of a minors agreement An agreement with or by a minor

ab initio Beneficial contracts

is void

Whether a minors agreement is a void or voidable one was debated for a long time. Then in 1903, the Privy council in Mohoribibi v. Dharmodas Ghose resolved the conflict and declared that a minors agreement is void.

A child show poor judgment in making a particular contract, and it is a protection against his own ignorance and immaturitynot mere fraudulent manipulation by othersthat the law affords. The general presumption that every man is the best judge of his own interests is suspended in the case of children.

No ratification
A minors agreement is a void agreement. Therefore, the minor cannot ratify the agreement on attaining majority. Ratification relates back to the date of the making of the contract and, therefore, a contract which was then void cannot be made valid by subsequent ratification. But on attaining majority, if he makes a new promise on a fresh consideration, then that agreement is binding.

 A minor borrowed a sum of money, executing a simple bond for it, and after attaining majority executed a second bond in respect of the original loan plus interest. Held that the suit upon the second bond was not maintainable. the consideration which passed under the earlier contract cannot be implied into the contract into which the minor enters on attaining majority.

Minor can be a promisee or beneficiary

He can purchase a property, being beneficiary or promisee But he cant be a promisor. He cant sell a property. A contract executed in favour of a minor can be enforced by him. He could get a decree on mortgage executed in his favour.

NO ESTOPPEL AGAINST A MINOR

THE RULE OF ESTOPPEL IS NOT APPLIED AGAINST A MINOR. If he commits fraud and misrepresentation and enters into a contract, he cannot be made liable on the contract but the court will ask him to restore the benefit he has obtained out of that fraud or misrepresentation. He is not estopped from pleading his infancy so as to avoid the contract

NO SPECIFIC PERFORMANCE EXCEPT IN CERTAIN CASES

A minors contract is void ab initio. Hence he cannot be asked to perform the contract. If the guardian of a minor enters into a contract of which he has no authority, the minor cannot be asked to perform the contract. But if the guardian or manager has authority to enter into a contract on behalf of the minor, For the minors benefit; Then minor can be sued for specific performance.

LIABILITY FOR TORTS

Minor can be held liable for tort unless that tort is a breach of contract. Minor was rented certain instruments for his use and handed over it to his friend. It was lost. He can be sued for the tort. The principle is that you cannot convert a contract into a tort to enable you to sue an infant.

Burnard v. Haggis
The defendant a Cambridge university student and minor, hired a horse for the purpose of riding, expressly stated that he did not want a horse for jumping. The defendant let the horse to a friend, who used it for jumping, with the result that it fell and was injured. The defendant held liable on the ground that the act was outside the contract and not an abuse of the contract.

NO INSOLVENCY
A minor cannot contract a debt. Hence he cant be declared insolvent or pauper He is not personally liable

PARTNERSHIP
He cant be a partner. But he can reap out the benefits of a partnership

AGENT
Minor can act as an agent But he will not be liable to the principal. A minor can draw, deliver and endorse negotiable instruments without himself being liable

MINOR CANT BIND HIS PARENTS OR GUARDIAN

Minor cant make his parent or guardian liable for his acts even if it for his necessaries. He can make them liable only when he acts as their agent

In the case of a joint contract by a minor and an adult, the adult will be liable but not the minor.
In the contract of guarantee, when an adult stands surety for a minor, the adult will be liable to the third party.
A minor cant be a shareholder.

SECTION 68: MINOR CAN BE HELD LIABLE FOR THE NECESSARIES SUPPLIED TO HIM
No personal liability on the minor Only his property will be held liable. A minor liable for the value of necessaries supplied to his wife

Conditions to make minors estate liable for the necessaries supplied to him
The contract should be for goods reasonable necessary for his support in his station in life The minor must not have already a sufficient supply of these necessaries

A supplies B a minor with necessaries suitable to his life. A is entitled to be reimbursed from Bs property. Things necessary are those without which an individual cannot reasonable exist. Food, raiment, lodging and the like. What are necessaries has to be determined with reference to the fortune and circumstances of the particular minor. Articles therefore that to one person might be mere convenience or taste may in another case be the necessaries for yet another person.

Doctrine of restitution
If an infant obtains property or goods by misrepresenting his age, he can be compelled to restore it, as long as the same is traceable in his possession. This is known as the equitable doctrine of restitution. Restitution stopped where repayment began. Where the infant has sold the goods or converted them, he cannot be made to repay the value of the goods, because that would amount to enforcing a void contract The doctrine of restitution is not applicable if the infant has obtained cash instead of goods. Leslie ( R) Ltd. v. Sheill: in this case, an infant succeeded in deceiving some money lenders with a lie about his age, and so got them to lend him 400 pounds on the faith of being adult. Their case to recover the

PERSONS OF UNSOUND MIND SECTION 11 & 12

PERSONS OF UNSOUND MIND ARE INCOMPETENT TO CONTRACT SUCH TYPE OF CONTRACTS ARE VOID A person is said to be of sound mind for the purposes of making a contract, if, at the time of making the contract, he is capable of understanding it and of forming a rational judgment as to the effects of that contract upon his interests.

 A person usually of unsound mind but occasionally of sound mind is competent to contract when he is of sound mind. e.g.insane A person usually of sound mind but occasionally of unsound mind cannot contract when he is of unsound mind. E.g. drunkard

UNSOUNDNESS OF MIND
Idiocy- lack of capacity to understand the terms of the contract and its effects Lunacy/ Insanity- disease of the braincan enter into contract at times when he is sane Drunkenness- temporary incapacitysame as lunatic Hypnotism- temporary- artificially induced sleep Mental decay- on account of old age

PERSONS DISQUALIFIED UNDER LAW

ALIEN ENEMIES FOREIGN SOVEREIGN & AMBASSODORS INSOLVENTS CORPORATIONS- ONLY THROUGH AGENTS