In regards to the agreements made by or with him, minors have a distinctive situation. The law safeguards a minor's interests with respect to a contract that he enters into. In actuality, the law safeguards a youngster from both his own inexperience and from the improper and malicious intentions of others who are older and more experienced. The statement that "the law protects little persons; preserves their rights and estates; excuses their laches; supports them in their pleas; the judges are their advisors, the juries arc their slaves, and the law is their guardian" has been made with great accuracy. Furthermore, a minor can always claim their status as a minor and benefit from this defence.
The following are the typical guidelines for contracts entered into by minors in India:
i) Any agreement made with or on behalf of a minor is null and void from the start. With very few exceptions, any agreement made by or with a minor is void from the start and cannot be enforced by the law.
ii) A promisee or beneficiary may be a minor. The law does not prevent a minor from being a promisee, payee, or beneficiary even though an agreement entered into by or with a minor is void from the start. A contract made by or with a minor may be upheld at the minor's will and in his favour, rather than the will of the other party. He is not prohibited by the law from receiving a benefit.
For instance: Jim, a minor, provided products to the buyer in accordance with a sale contract. According to the ruling, he had the right to continue a lawsuit for price recovery.
iii) A minor is exempt from having to make restitution or pay for any benefits received. A minor cannot be required to make restitution or payment to the other party if he or she has benefited in any way from a void agreement.
As an illustration, neither the property nor the minor are responsible for repaying a loan that a minor got by mortgaging any type of property.
As an illustration, neither the property nor the minor are responsible for repaying a loan that a minor got by mortgaging any type of property.
iv) A Minor May Always Represent Their Minority. A minor cannot be held liable for fraud if he or she misrepresented their age in order to persuade the other party to engage into a transaction with them. However, the court may order the youngster to restore any loans or property they may have gotten by deception or other dishonest means to the other party. The minor is not allowed by law to defraud others.
v)He will not be able to ratify agreements with minors once he reaches the age of majority. Even after reaching majority, a minor cannot ratify an agreement they themselves agreed into. The minor may enter into a new contract after reaching majority, but there must be sufficient consideration.
vi) It is prohibited to demand the precise performance of a contract that a minor entered into. An agreement made by or with a minor cannot be specifically performed since it is void from the start. However, if a minor's parents, guardians, or estate manager form an agreement on his or her behalf, as long as the agreement is made for the minor's benefit and falls within the express purview of the power of the parent, guardian, or estate manager, it can be enforced.
vii) A Partnership Firm may admit a Minor for Benefits Only. A minor is typically not permitted to join a partnership firm. However, with the approval of the other partners, a minor may be allowed access to the benefits of an existing partnership. A minor is not responsible for the company's losses.
A minor who is unable to enter into a contract is not permitted to be a partner in a partnership firm, but he may be admitted to the advantages of partnership under section 30 of the Indian Partnership Act with the approval of all the partners through an agreement signed through his legal guardian. A kid in this situation would be entitled to the agreed-upon share of the firm's assets or profits, as well as access to all of the firm's financial records for inspection and copying. The child is not allowed to operate the company and is not allowed to share in losses. He cannot be held personally accountable for any of the firm's obligations, but he is free to accept them after reaching the age of majority if he so chooses.
viii) An Agent could be a Minor. A minor appointed as an agent is obligated to his principal by his actions, but he is not personally liable. However, the minor's principle will be held accountable to the third party for any actions the minor takes while acting as the principal's agent. Cook for The principal takes a big risk by designating a minor as an agent.
ix) Minor is Responsible for Required Services. A minor may be required to give back his property if it was used to pay for necessities for him or any minor dependents he was required by law to support. But in this situation, the youngster is not held personally responsible. A juvenile who takes out a loan to buy necessities makes his property liable for the debt and is obligated to repay it just as if the lender had given him the necessities.
x) Minors are not deemed insolvent. A minor cannot be declared insolvent since they lack the legal capacity to enter into a contract of debt.
xi) Parental and guardian responsibility. Except in cases where the minor has acted as the parents' or guardians' agent, the minor's parents or guardians are not responsible for the contracts that the minor enters into.
