Skip to content

CA Foundation · Business Laws · The Indian Contract Act, 1872

Nisha, a minor, is the beneficiary of a contract in which she is to receive Rs 40,000 from Omkar when she turns 18, in exchange for work she already completed for Omkar. Omkar refuses to pay, saying minors cannot enforce contracts. Which view is correct?

Nisha can enforce the contract. The law protects a minor from being bound, but she can take benefits under a contract where she has already given her performance and only the other party owes something. Omkar cannot escape payment by pleading her minority.

  1. AOmkar is correct, because every contract with a minor is void and enforceable by neither side
  2. BNisha can enforce the contract, because a minor can be a promisee or beneficiary where she has fully performed her side and the contract is for her benefitCorrect
  3. CNisha can enforce it only after her guardian ratifies it
  4. DOmkar is correct, because a minor cannot give consideration

Explanation

A minor cannot be bound by a contract, but she may take the benefit of one. Where the minor has already performed her part and only the other party has obligations, the contract is enforceable by the minor. The 'every contract is void' view is wrong because the rule protects the minor, not the other party.

Did you get it right without looking?

One question tells you little. A timed set on The Indian Contract Act, 1872 shows your real accuracy, how long you take and where you lose marks.

Practise The Indian Contract Act, 1872Free diagnostic mock

More The Indian Contract Act, 1872 questions