minors business law

8/8/2019 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.

BUSINESS LAW


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BUSINESS LAW

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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BUSINESS LAW

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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BUSINESS LAW

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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BUSINESS LAW

7. Minor cannot enter into a contract of Partnership.

8. Minor cannot be adjusted insolvent

9. Minors liable for necessaries


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BUSINESS LAW

10. Minor can be an Agent

11. Position of minors parents

12. A Minor is liable in tort


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BUSINESS LAW

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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BUSINESS LAW

Necessaries include,

Necessary goods: Such as bread and clothes :

Services rendered: It include education, training

for a trade, medical advice


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BUSINESS LAW

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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BUSINESS LAW

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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BUSINESS LAW

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.

minors business law

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