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CHAPTER-4
LAPACITY OI PANTIES

tivalg Wibdon
Ce tu mh wtes

a
Who is competentto contract (sec. 11)
who is of the age of
majority
HUNN, OOPNUAI

is of sound mind
Oahne Aadaj

is not disqualified to
contract by any law
-

Natureof
emar

Minor

ncomgeten gSmaion
to contract
yeas mnor
B.Com.(Hons.)-New 1nd SEM BUSINESS LAW THE INDI

Reet
e mata
ton
Fnt Pangragh

Law Relating To Minor's Agreements

Agreement with a minor is

and inoperative against him
void ab initio

or S1de 0n e pea o ha mnority when the

eitng
mortgage Was executed
the mortgage

Doctrine of Restitution not applicable

Restoration of predeus statenot allcwes

Mahornbib w
or fraudset repreents hemer s major to
enter into an
agreemen

Cick to dd notes
Leave
Windows A 01/2022
Law Relating To Minor's Agreements
Beneficial Agreements are valid
Abdul Galfar Prem Piare Lal minor de livered goods in the sale of goods
contract but did not recevedmoney
Minor can sue in case of Apprentikeshlp contract but not in contract of service

No ratification on attaining majority

Adoption and acceptancelater not allowed
Party muST be competent atformation and ratfication of agreement
f minor continues to enjoy the same services after majority as well and
promises to pay for the whole, then such promise is valid
Kundan bibi vs Shree Narayan :s iminor) recewed goods from K. On attaining
majority took further goods and executed the bond for pay1ng the total
amount

No Estoppel
Estoppel -Prevents someone trom arguing somethang
Even f ninor has misiepres ented his age, he cant be made to re pay money
which he has spent
RS-B.Com.(Hons.)-New Ind SEM BUSINESS LAWT TH

Law Reasny TovnorSAreements

Minor's liability for necessaries

Reesonable Money can be recoveredfrom his property only

Minor as partner of firm
Can become partner only for benefits and not losses
On attaining majority, he can either leave or join fim but decision within 6
months, otherwlse by default, he becomes partner

Minor as agent

Can not be held personaly liable even in

case ofbreach
Minor cannot be adjudged insolvent Leave
Because he cannot be held personally liable even for necessaries supplid to him
-RS-B.Com.(Hons.)-New Ind SEM BUSINESS LAW TH

Law Keaing toVinor's Agreements

Contract entered into by minor and adult
jointly
Whole liabilty of adult only

Guarantor for a minor

Liability of Guarantor

Position of Minor's Parents

Liable only when minor acts as their agent

Minor as Shareholder

Only through guardian and for fully paid upshares Leave v a t e Win

Minor is liable for torts (civil wrorlgs

 Persons Of Unsound Mind

Sec 12 provides
Meaning that O
person aho sualy
Incapabie to understand unsound mind but
Y sound mind Sesslan
c a c t when he

Unable to make a rationa

sound mind but occassionally

mind may not
sound
Court to decide unsoundness male a contract when he is of
nsourid mind
 Types of Unsound Mind
Idiocy (permanend)

Lunacy or Insanity

Due to mental liness orstress [disease of tbrain)

Drunkenness or intoxication
Oaline aadam slon

Hypnotism

Mental deCay

On accountot age
Nature of contracts by Persons of Unsound Mind

Burden of proof
Lies on the party wiho sets up such disability

Oali

How the agreement is treated

Same as that with minor

He can derive benefit under it
The property is liable for necessaries supplied to him
 Persons Disqualified By Law

Ailen enemies

FOrelgn overegs and Ams5sa0015

Diplomatic immunity under Vienna convention 1961

Convicts (while imprisoned) Osline leade eaion

Joint Stock Company and Statutory Company

Cannot go beyond MoA and Statute

Declared Insolvent