Page 15 - 01. Indian Contract Act, 1872

As per the transfer of property Act, a minor cannot transfer a property but he can
be a transferee .

Position of minor’s agreement

(i) An agreement entered into by a minor is altogether void i.e void abinito

(ii) Minor can be a promise or a beneficiary
(iii) minor can always plead minority

(iv) Contract by guardian, is enforceable if

(a) It is within his completence and authority
(b) For the benefit of the minor.

(vi) Minor‟s property is liable for necessaries
(vii) Court can never direct specific performance of the contract

(viii) Minor cannot be a partner in partnership firm. He can however be

administer to benefits of partnership firm
(ix) Minor can act as an agent and bind his principal without incurring any

personal liability
(x) Minor can never be adjudicated as an insolvent.

 Lunatics agreement
 As per Section 12 of the Indian contract Act,

 “ A person is said to be of sound mind for the purpose e of making a

contract, if at the time when he makes it, he is capable of undertaking it

and of forming a rational judgment as to its effects

 A person of unsound mind includes:
(i) Lunatics (ii) idiots (iii) drunkards

 Such agreement is void.
 Lunatics estate will be liable for any necessaries supplied to him or his family.

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