Legal Rules governing Minors Agreement.

Legal Rules governing Minors Agreement. First rule: Law protects minors [Public Policy]- against their own inexperience, and - against the possible improper and exploitative designs of those more experienced than the minor. Second rule:- The law should not cause unnecessary hardship to genuine and honest persons who deal with minors. Therefore, the Law attempts to - strike a balance between the conflicting interests.1. A Minors Agreement is void ab initio: One named Dharmo Das a minor, executed a mortgage for Rs. 20,000/- declaring himself major; Received Rs. 8,000/- from Mohori Bibi, a mortgagee; The minor wanted to set aside the mortgage.The mortgagee wanted the refund of Rs. 8,000/-. It was held by Privy Council: - The agreement with the minor was void ab initio - The question of refunding money does not arise. [Ref: Mohoi Bibi vs. Dharmodas Ghose]

2. However, the minor may enforce the agreement against the other party - if he has carried out his obligation.

3. No Ratification: Minor cannot ratify the agreement on attaining the age of majority which he has entered into at the age of minority.

4. Minor can plead minority to avoid contract. Doctrine of estoppel does not apply to Minor. Example: X a minor borrows money from Y by fraudulently misrepresenting that he is a major. He is saved when he denies that fact.

5. A minor is not liable to restore any property or goods received by him under an agreement. - Minor can be compelled to return, if goods are traceable in his possession. - If minor has sold the goods, then nothing can be claimed. 6. No specific or actual Performance by minor is required of an agreement entered into by him - reason being, the agreement is void ab initio. In case guardians entered into a contract, - if they have the authority and - it is for the benefit of minor - it is valid7. Minor can be a promisee or a beneficiary: where the minor bears no obligation, and the agreement is for his benefit, then such agreement is valid. Ex: A promissory note executed in favor of minor is valid.

8. Minor as a partner: A minor cannot become a partner in a partnership firm but he can be admitted to benefits of the partnership with consent of all the partners. The minor is liable to losses, but not his personal property.

9. Minor as an agent: He can be appointed as an Agent The principal shall be bound for the acts of Minor agent. 10. Minor cannot be adjudged as insolvent: Even for necessaries supplied to him his property is liable, but he is not personally liable . 11. Position of a surety: where in a contract of guarantee, if a major stands surety on behalf minor, then major would be liable. 12. Position of minors parents: Parents are not liable for the contract entered into by the minor himself. They are liable only if minor is their agent.

13. Minor as a shareholder: A minor cannot become a shareholder, but fully paid up shares may be transmitted to him through his lawful guardians.

14. A minor is liable in tort i.e. civil wrong: but where tort arises out of contract a minor is not liable in tort as it amounts to an indirect way of enforcing an invalid contract.

15. Minors Liability for necessaries: Minor is not personally liable to pay even for the necessaries supplied to him, but his estate is liable, if he has any estate.16. What constitutes Minors necessaries: Necessaries is not confined to food, clothing and shelter, but it also includes articles or services which are reasonably necessary for a minor suitable to his conditions in life. Articles, for example: a watch, a mobile phone or a bicycle may be necessary for a minor.Services, for example: Education, Medical help, Training in a vocation, Legal Advice etc.... Also liable to pay loan taken for necessaries.

817.Following are also considered as necessaries: For saving his property from sale in execution. For marriage of his sister For Shradh i.e. death anniversary ceremonies of the ancestors of the minor. For rent of house taken by minor for the purpose of studies. 18. Following are not considered as necessaries:Cigar, Chewing tobacco and alcoholic beverage. Refreshment for entertainment. A silver gift

19. A minor is liable to pay for necessaries supplied or services rendered to the person whom he is legally bound to support.