minors business law
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MINOR
According to Sec. 3 of the Indian Majority Act,
1875, a minor is a person who has not completed
eighteen years of age.
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In the following two cases, a minor attains majority after
twenty-one years of age.
Where a guardian of a minors person or property has
been appointed under the Guardian and Wards Act, 1980,
(or)
Where the superintendence of a minors property is
assumed by the Court of Wards.
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MINORS AGREEMENT
1. An agreement with or by a minor is void and
inoperative (Mohiri bibi vs Dharmodas Ghose).
2. He can be a promisee or a beneficiary.
3. No ratification on attaining the age of majority .
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4. If he has received any benefit under a void
agreement he cannot be asked to compensate or
pay for it.
5. He can always plead minority.
6. No Specific performance.
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7. Minor cannot enter into a contract of Partnership.
8. Minor cannot be adjusted insolvent
9. Minors liable for necessaries
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10. Minor can be an Agent
11. Position of minors parents
12. A Minor is liable in tort
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MINORS LIABILITY FOR NECESSARIES
Suitable to the position and financial status of the
minor.
Necessaries both at the time of sale and at the time of
delivery.
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Necessaries include,
Necessary goods: Such as bread and clothes :
Services rendered: It include education, training
for a trade, medical advice
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MINORITY DISAFFIRMANCE
The contract may be manifested by words or actions.
The contract must be disaffirmed in its entirely
Disaffirmance must be timely.
When a minor disaffirms a contract, all property that he or she has transferred
as consideration can be recovered
A minor may disaffirm a contract at any time during minority or for a
reasonable time after the minor comes of age.
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MINORS AND PARENTS LIABILITY
(1) One or more parent(s) co-sign the contract, and thereby assume
personal liability for its performance, even if their minor child
disaffirms the contract; and/or
(2) The minor child committed some wrongful act associated with the
contract at the direction ofone or both parent(s).
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MINORITY EXCEPTIONS
Misrepresentations regarding Age;
When the minor has engaged in business as an adult;
Courts permit disaffirmance but subject the minor to tort liability for his or her
misrepresentation;
Some courts refuse to allow minors to disaffirm fully performed contracts
unless they can return all consideration received.