Question

Kenny, aged 17 years, 11 months, buys a used car on credit from Cars R Us The contract also includes a service agreement obligating the seller to perform certain maintenance on the car for one year, Kenny makes five monthly payments in the five months after he turns 18. In addition, he has the seller service the car on four separate occasions. After making the fifth payment Kenny announces to Cars R Us that he wants to disaffiemie return the car and get back the full price. Will he be able to do so?

This is a business law question

Answer 1

Explanation to the abobe problem is as under:

Indian Contract Act 1872

The enforceability of an agreement Section 2(b) carries a pre-condition that the parties to a contract must be competent to contract (Section 10)

Section 11 of Indian Contract Act 1872 defines the competency/capability or capacity to enter into a contract.

"Every person is competent to contract who is of the age of majority according to the law to which he is subject, and who is of sound mind, and is not disqualified from contracting by any law to which he is subject."

Hence, any agreement with the minor is Void-ab-Initio (i.e Void since inception). an agreement with the minor is completely void. A minor cannot ratify the agreement even on attaining majority because a void agreement cannot be ratified.

Thus, in the above case, Kenny being a minor, any agreement entered in by him is Void and any transactions entered in or made by the minor would be restated.