Contracts with Minors Not Enforceable Under the Law

Contracts with Minors Not Enforceable

VoM News Desk | February 29, 2024 | 04:23 PM IST | Breaking News, Courts & Law | Follow on Google News

Contracts with Minors Not Enforceable Under the Law: SC

Contracts with Minors Not Enforceable Under the Law: SC

High Court’s Decision Upheld

In a recent ruling, the Supreme Court reaffirmed that contracts entered into by minors are not enforceable under the law. The bench of Justices Hrishikesh Roy and Prashant Kumar Mishra upheld the High Court’s decision, which declared void the sales agreements involving minors. The justices emphasized that there is no dispute regarding the appellants being minors at the time of the agreements, making the contracts rightfully void. The dispute arose from the appellant’s consent to purchase immovable property as a minor, leading to a legal challenge.

Legal Background and Dispute Resolution

The sales agreement in question involved a minor who consented to purchase immovable property, and an advance amount was paid to the sellers. However, the High Court declared the agreement void ab initio, given that one party was a minor. The trial court initially rejected the sellers’ application, but the High Court allowed a revision application, reinforcing the principle that contracts with minors are void. The minor then challenged the High Court’s decision before the Supreme Court, arguing that the agreement was enforceable.

Supreme Court’s Perspective and Decision

The Supreme Court clarified that contracts must involve parties capable of contracting, and a minor’s contract is inherently void under the Contract Act, 1872. Citing the precedent Mathai Mathew vs. Joseph Mary Alias Marykutty Joseph, the court emphasized that a minor’s contract cannot be considered binding unless represented by a natural or court-appointed guardian. The bench found no infirmity in the High Court’s perspective and dismissed the minor’s appeal.

Indian Law on Minors and Property Transactions

Under Indian law, minors are prohibited from entering into contractual agreements, including property purchases. Parents or legal guardians, however, are authorized to purchase properties on behalf of minors. In such cases, the property is registered in the minor’s name and held in trust until legal adulthood. The parent or guardian must act in the minor’s best interests, ensuring legal compliance and a clear title for the property.

This ruling reinforces the legal framework surrounding contracts with minors, emphasizing the importance of protecting their interests and upholding the principles of contract law.

VoM News Desk

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