Capacity to contract (ss. 11, 12, 68): minors, persons of unsound mind and persons disqualified by law
LUG-103 Law of Contract including Specific Relief Act & Sale of Goods Act, Unit I: Capacity to enter into a contract: · LLB · 60 min
This lecture covers topics 17 and 18 of Unit I. It starts from s. 11 and the three classes of incompetent persons, then takes the minor's agreement in full: Mohori Bibee and 'void ab initio', no ratification, no estoppel against a minor (Khan Gul; Ajudhia Prasad), restitution and compensation (s. 65 does not apply; s. 33 of the Specific Relief Act 1963 and the 2017-18 problem on the fraudulent mortgage), necessaries under s. 68 (Nash v. Inman), contracts beneficial to a minor (Raj Rani v. Prem Adib; Sri Kakulam Subrahmanyam), the minor as agent, partner and shareholder, and the English position (Leslie v. Sheill). It ends with persons of unsound mind under s. 12 and persons disqualified by law.
Objectives
- State who is competent to contract under s. 11 and explain the age of majority under the Indian Majority Act 1875
- Explain why a minor's agreement is void ab initio (Mohori Bibee) and the consequences: no ratification, no estoppel, limited restitution
- Apply s. 68 and Nash v. Inman to claims for necessaries, and distinguish contracts a minor can take the benefit of
- Solve the problem of a minor who obtains a loan or mortgage by misrepresenting his age, Indian and English law compared
- Explain the test of a sound mind under s. 12 and list the persons disqualified by law
Slides
- Section 11: who is competent to contract
- Mohori Bibee v. Dharmodas Ghose: the minor's agreement is void ab initio
- No ratification; minor as promisee; the rule is a shield
- No estoppel against a minor: Khan Gul v. Lakha Singh and Ajudhia Prasad v. Chandan Lal
- Restitution and compensation: s. 65 does not apply; s. 33 of the Specific Relief Act 1963; Leslie v. Sheill
- Problem: the minor's fraudulent mortgage for Rs 10,000 (2017-18 Q(C)1)
- Necessaries: s. 68 and Nash v. Inman
- Contracts beneficial to a minor; the minor as agent, partner and shareholder
- Persons of unsound mind: s. 12
- Persons disqualified by law (2022-23 Q2(f))
- How the examiner asks it
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