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CMA Foundation · Fundamentals of Business Laws and Business Communication · Capacity of Parties, Free Consent

Karan, a minor, falsely states that he is 20 years old and induces a dealer, Mr. Bose, to sell him a motorcycle on credit. Karan's age is later discovered. Which statement is correct under the position taught for this exam?

The agreement is still void because a minor cannot be estopped from pleading minority, despite the false statement of age. Bose cannot recover the price under the contract, though a court may, in equity, order return of the motorcycle if Karan still has it.

  1. AKaran is estopped from pleading minority, so the contract is fully enforceable against him
  2. BThe agreement is void and Karan cannot be made to pay under the contract, though the court may in equity direct restitution of the motorcycle if it is still with himCorrect
  3. CThe agreement is voidable at Bose's option because of Karan's fraud under Section 19
  4. DThe agreement becomes valid when Bose proves the misstatement caused his consent

Explanation

The rule of estoppel does not apply against a minor, so a false statement of age does not make the agreement enforceable. The agreement remains void under Section 11 and Karan cannot be sued on it. Equity may require return of the specific property still in his hands, but not repayment from other assets. Section 19 makes agreements voidable for fraud, but it cannot give validity to an agreement with a person not competent.

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