Question

Legal Principle: Every person, who is of the age of majority, is competent to contract according to the law to which he is subject.

Factual Situation: A minor mortgaged his house in favour of Thakur Das, a moneylender, to secure a loan of Rs. 20,000. A part of this, i.e. Rs. 10,500 was actually advanced, the attorney who was acting for the moneylender, received information that the plaintiff was still a minor. Subsequently, the minor commenced an action stating that he was underage when he executed the mortgage and the same should, therefore, be cancelled. He prayed for setting aside the mortgage. The mortgagee/ moneylender prayed for the refund of Rs. 10,500 from the minor.

• A. As a minor's contract is void, any money advanced to a minor can be recovered.
• B. A minor's contract is void ab initio , any money advanced to a minor cannot be recovered.
• C. A minor's contract is voidable, any money advanced to a minor can be recovered.
• D. Advanced money can be recovered because the minor has given wrong information about his age.

Answer 1

The correct option is B A minor's contract is void ab initio , any money advanced to a minor cannot be recovered.

Section 11 of the Indian Contract Act 1872 describes the competency of the parties to contract, which says that a person who had attained the majority is eligible for the contract. A minor is not eligible to contract and if so happens, that contract is void ab initio, and also any financial payments cannot be recovered from a minor.

Hence, the correct answer is B.