According to Section 10 of the Indian Contract Act, 1872 All agreements are contracts (See... Difference between Contract and Agreement ) if they are made by the free consent of parties competent to contract, for a lawful consideration and with a lawful object, and are not hereby expressly declared to be void.

1) Who are competent to contract

       Section 11 of the Indian Contract Act says that every person is competent to contract who is of the age of majority according to the law to which he is subject, and who is sound mind and is not disqualified from contracting by any law to which he is subject.

           According to Section 11 of the said Act, minors, persons of unsound mind and persons disqualified by law are not competent to contract.
  (See... When a unsound mind person is capable to enter into contract ? )


2) Who is Minor?

      A person who has not attained the age of majority is a minor. Section 3 of the Indian Majority Act 1875, says that minor is a person who has not completed the age of 18 years. The Minority extends to 21 years if a guardian of a minor's person or property is appointed. In England, the age of Majority is 18 years.

  3) Nature of Agreement:  

             An agreement with minor is void ab initio. this is decided in Mohiribibi  Vs. Dharmadas Ghosh.(Void ab initio: void ab initio means invalid, at the very beginning.)

 4) Effects of Minor's  Agreement :

             (a) Estoppel: If a minor makes a false representation about his age and contracts, he shall not be liable for his act .

             (b) Liability: No liability in tort arising out of contract, but he is liable for the tort.

             (c) Restitution: A minor need not return or restitute the benefits received under

             (d) Ratification:  Ratification means subsequent sanction. A minor's agreement is void and being nullity has no existence in the eye of the law and therefore it cannot be ratified, it cannot support a fresh promise by the infant after attainment of majority.

             (e) Performance: Minor cannot be sued for specific performance.

See also 

1) When a unsound mind person is capable to enter into contract ?

2) What is a sound mind for the purposes of contracting ?

3) Rights and Duties of Agent (Agency: Indian Contract Act,1872)

4) Types of Agreement (The Indian Contract Act, 1872)

5) Difference /Distinction between Void and Voidable Contracts


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