Contracts
- By Mominur Rahman
- Published 16 October 2006
- Law
- Unrated
Who are not competent to contract
Under section 11 of the Contract Act, there are two kinds of disqualification:
(a) Disqualified of infancy, and
(b) Disqualification by insanity.
Infancy: Section 3 Majority Act, 1875, declares that every person shall be deemed to have attained his majority when he shall have completed his age of eighteen years and not before. In the case however, of a minor of whose person or property or both a guardian has been appointed by a Court, or of whose property the superintendence is assumed by a Court of Wards, before the minor has attained the age of eighteen years, the Act provides that the age of majority shall be deemed to have been attained on the minor completing his age of twenty-one years. Minor’s personal law would apply if the majority age thereunder were different.
An agreement entered in to by a minor is invalid.
Illustration
A minor entered in to a mortgage and the money was advanced to him by the money lender. It was held that the mortgage was void and the money lender who had advanced money to a minor on the security of the mortgage is not entitled to repayment of the money under section 64and65 on a decree being made declaring the mortgage invalid. Mohori Bibee v. Dhurnodas Ghose, (1903) 30 Cal.539:L.R.30.I.A.114.
A guardian can make an enforceable contract of marriage for a minor (48 Bim.573, dupts.) but a Muslim widow is not competent to make a partnership contract for her minor children. A.Khorajsaway v. C.Acha,(1928) 6 Rang. 98.
The court may award compensation to the other party against the minor if the latter obtained the contract through fraudulent representation (Mohori Bibee’s case supra) but a contract will not be allowed to be converted in to tourt. Leslie v. Sheill, (1914) 3 K.B.607.
A minor can not be stopped by a false representation as to hia age, for, there is no estoppels against statute. Sadiq Ali Khan v. Joi Kishore. (1928) 109.I.C. 387.
Sale in favour of minors. A dully executed transfer by way of sale (Munni Koer v. Madan Gopal 1916) 38 All 52 Munia v. Perumal (1911) 37 Mad. 390. Or mortgage(Raghava Chariar v. Srinivasa 1917) 40 Mad..308(F.B) Madhab Roeri v. Baikuntha Karmakar (1919) 4 Pat. I.J. 582. Zafar Ahsan v. Zubaida Khatum (1929) 27 All.L.J.1114. in favour of a minor who has paid the consideration money is not void, and it is enforceable by him.
Necessaries. Section 68 provides for liability in respect of necessaries supplied to a person incapable of entering in to a contract. A minor is a person incapable of contracting within the meaning of that section, (Walkins v. Dhunnoo Baboo, 1881) 7.Cal 140,143) and therefore the provisions of that section apply to his case. Thus if a minor is supplied necessaries by a person, that person must be reimbursed from minor’s property.
Examples of Necessaries.
(a) Costs incurred in successfully defending a suit on be half of a minor in which his property was in jeopardy are, “necessaries”.Watkins v. Dhunnoo Baboo,(1881) 7,Cal,140.
(b) Cost incurred in defending a minor in a prosecution. Sham Charan Mal v. Ch. Dedya Singh, (1894) 21, Cal. 872.
(c) A loan to a minor to save his property from sale in execution of a decree. Kidar Nath v. Ajudhia(1883)Punj.Rec.No.185.
(d) Money advanced to minor to meet his marriage expenses. Rahima Bidi v.Sherfuddin,(1947) Mad.541.
Insanity. A person is said to be of sound mind for the purpose of making a contract if, at the time when he makes it, he is capable of understanding it and of forming a rational judgement as to its effect upon his interests. As to evidence of unsound mind see Ram Sundar Saha v.Raj Kumar Sen(1928)55Cal.285.
A person who is usually of sound mind, but occasionally of unsound mind, may not make a contract when he is of unsound mind.
Illustration
(a) A patient in a lunatic asylum, who is at intervals of sound mind, may contract during those intervals.
(b) A sane man, who is delirious from fever who is so drunk that he can not understand the terms of a contract or form a rational judgement as to its effect on his interest, can not contract whilst such delirium or drunkenness lasts.
(a) Disqualified of infancy, and
(b) Disqualification by insanity.
Infancy: Section 3 Majority Act, 1875, declares that every person shall be deemed to have attained his majority when he shall have completed his age of eighteen years and not before. In the case however, of a minor of whose person or property or both a guardian has been appointed by a Court, or of whose property the superintendence is assumed by a Court of Wards, before the minor has attained the age of eighteen years, the Act provides that the age of majority shall be deemed to have been attained on the minor completing his age of twenty-one years. Minor’s personal law would apply if the majority age thereunder were different.
An agreement entered in to by a minor is invalid.
Illustration
A minor entered in to a mortgage and the money was advanced to him by the money lender. It was held that the mortgage was void and the money lender who had advanced money to a minor on the security of the mortgage is not entitled to repayment of the money under section 64and65 on a decree being made declaring the mortgage invalid. Mohori Bibee v. Dhurnodas Ghose, (1903) 30 Cal.539:L.R.30.I.A.114.
A guardian can make an enforceable contract of marriage for a minor (48 Bim.573, dupts.) but a Muslim widow is not competent to make a partnership contract for her minor children. A.Khorajsaway v. C.Acha,(1928) 6 Rang. 98.
The court may award compensation to the other party against the minor if the latter obtained the contract through fraudulent representation (Mohori Bibee’s case supra) but a contract will not be allowed to be converted in to tourt. Leslie v. Sheill, (1914) 3 K.B.607.
A minor can not be stopped by a false representation as to hia age, for, there is no estoppels against statute. Sadiq Ali Khan v. Joi Kishore. (1928) 109.I.C. 387.
Sale in favour of minors. A dully executed transfer by way of sale (Munni Koer v. Madan Gopal 1916) 38 All 52 Munia v. Perumal (1911) 37 Mad. 390. Or mortgage(Raghava Chariar v. Srinivasa 1917) 40 Mad..308(F.B) Madhab Roeri v. Baikuntha Karmakar (1919) 4 Pat. I.J. 582. Zafar Ahsan v. Zubaida Khatum (1929) 27 All.L.J.1114. in favour of a minor who has paid the consideration money is not void, and it is enforceable by him.
Necessaries. Section 68 provides for liability in respect of necessaries supplied to a person incapable of entering in to a contract. A minor is a person incapable of contracting within the meaning of that section, (Walkins v. Dhunnoo Baboo, 1881) 7.Cal 140,143) and therefore the provisions of that section apply to his case. Thus if a minor is supplied necessaries by a person, that person must be reimbursed from minor’s property.
Examples of Necessaries.
(a) Costs incurred in successfully defending a suit on be half of a minor in which his property was in jeopardy are, “necessaries”.Watkins v. Dhunnoo Baboo,(1881) 7,Cal,140.
(b) Cost incurred in defending a minor in a prosecution. Sham Charan Mal v. Ch. Dedya Singh, (1894) 21, Cal. 872.
(c) A loan to a minor to save his property from sale in execution of a decree. Kidar Nath v. Ajudhia(1883)Punj.Rec.No.185.
(d) Money advanced to minor to meet his marriage expenses. Rahima Bidi v.Sherfuddin,(1947) Mad.541.
Insanity. A person is said to be of sound mind for the purpose of making a contract if, at the time when he makes it, he is capable of understanding it and of forming a rational judgement as to its effect upon his interests. As to evidence of unsound mind see Ram Sundar Saha v.Raj Kumar Sen(1928)55Cal.285.
A person who is usually of sound mind, but occasionally of unsound mind, may not make a contract when he is of unsound mind.
Illustration
(a) A patient in a lunatic asylum, who is at intervals of sound mind, may contract during those intervals.
(b) A sane man, who is delirious from fever who is so drunk that he can not understand the terms of a contract or form a rational judgement as to its effect on his interest, can not contract whilst such delirium or drunkenness lasts.
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Article Series
This article is part 1 of a 2 part series. Other articles in this series are shown below:
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Contracts