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Relation Definition

Solve.X, a gu...

Question

Solve.
X, a guardian, on behalf of V, a minor, entered. into a contract with Z for the purchase of a movable property for the benefit of the minor. Is the contract valid?

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Solution

Solution: Section to which the given problem relates: Section 10 and Section 11.
Decision: This contract is valid provided this contract is within the scope of the authority of guardian.
Reason: This contract is for the benefit of minor.
(Leading case: Subramanayan v. Subba Rao]

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Q. A. A minor is a person who is below the age of eighteen. However, where a guardian administers the minor's property the age of majority is twenty one.
B. A minor is not permitted by law to enter into a contract. Hence, where a minor enters into a contract with a major person, the contract is not enforceable. This effectively means that neither the minor nor the other party can make any claim on the basis of the contract.
C. In a contract with a minor, if the other party hands over any money or confers any other benefit on the minor, the same shall not be recoverable from the minor unless the other party was deceived by the minor to hand over money or any other benefit. The other party will have to show that the minor misrepresented her age, he was ignorant about the age of the minor and that he handed over the benefit on the basis of such representation.
Facts
Ajay convinces Bandita, a girl aged

18

that she would sell her land to him. Bandita's mother Chaaru is her guardian. Nonetheless Bandita, without the permission of Chaaru, sells the land to Ajay for a total sum of rupees fifty lakh, paid in full and final settlement of the price. Chaaru challenges this transaction claiming the Bandita is a minor and hence the possession of the land shall not be given to Ajay. Thus Ajay is in a difficult situation and has no idea how to recover his money from Bandita.
Which of the following is correct?

Q. An agreement for rendering service entered into by a father on behalf of his minor daughter is _______.

Q. Mr. X is a promoter of a company. Before the company is fully incorporated, he enters into a contract on its behalf with a third party. Under the common law, would a valid contract exist and, if so, who would be the parties to the contract?

Q. Which are the contracts entered into by promoters on behalf of a prospectus company?

Q. Anil entered into a contract with subhash for sale and purchased of a horse which, at the time of entering into a contract, was dead without the knowledge of both the parties. As a result of this, Anil could not sell the horse as per the contract. Advise Subhash.

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