MINORS AGREEMENT

For entering in to a valid contract the

parties must be competent to contract
Every person is competent to contract
who is of age of majority, is of sound
mind and is not disqualified from
contracting by law

Nature of minors agreement

1. Void agreement
2. Minor as a partner
3. Minor as a beneficiary
4. Minor as a agent
5. Minor and insolvency
6. Minor and ratification
7. Contract by minor and adult
8. Minor as member of company
9. Surety for a minor
10. Minors parent

1) Void Agreement Minor is a person who has not attained the age
of majority (18 years). Agreement with minor is void from beginning
because minor has no legal capacity to enter in to an agreement. He
is not liable to perform any act or promise under the agreement.
Example
Rashid enter in to an agreement with a minor Shahid, on the date of
performance Shahid refuses to perform the contract. Rashid cannot
sue Shahid because agreement with minor is void.
2) Minor as a partner A minor cannot become a partner in profit
and losses of a firm. However a minor can be admitted to the benefits
of the firm only.
Example Ali, and Shahid are partners in a firm they admitted a new
partner sajid a minor in profits and loss of firm. This is a void
agreement as minor cannot be admitted to profits and loss. Bashir
and Nazir are partners in a firm; they admitted a minor Bilal in profits
of the firm only. This is valid agreement

3) Minor as a beneficiary If an agreement is made

for the benefit of minor then the minor can take the
benefit of that agreement. A minor can enter in to
any agreement which do not required to bear any
obligation. A minor can enforce a promissory note
which is prepared in his favor but he is not liable.
Example Sajid, a minor delivered goods to Habib
under an agreement. Habib refused to make
Payment. It was held that minor can recover the
price of goods
4) Minor as Agent A minor can act as an agent.
But a minor is not responsible for any negligence. If
a minor breaches any duty, he cannot be held
responsible. Therefore the whole the risk goes to the
principal.
Example Ali appoints Munir a minor as his agent to
sell his house to a third party. Munir makes an

5) Minor and insolvency A minor cannot be considered

insolvent because he is not liable to perform any obligations.
Only his property is liable. If he has no property than the
payment cannot be recovered
Example
Shahid a minor buys medicine from Riaz under an agreement.
Shahid has no property. Shahid cannot be held responsible. He
cannot be declared insolvent.
6) Minor and Ratification A minor cannot confirm those
agreements that were formed during the age of minority. It is
necessary that a fresh agreement should be made after
attaining the age of majority.

7) Contract by minor and adult

If a minor and major (adult) jointly enter into an agreement
with other party, only major will be liable but a minor will not
be responsible
Example
Khalid a Minor and adult jointly enter in to an agreement to
purchase Alis house. In case of breach of contract only adult is
liable but not minor.
8) Minor as Member of company A minor cannot directly
buy shares of the company because he is not competent to
contract. If parents of a minor are shareholders of a company,
the company can transfer shares in favor of minor after the
death of his parents.
Example
Jamaal holds share of a company. He dies and leaves Zain (His
Son) a minor as his legal representative. Company is bound to
transfer shares to M.

9) Surety for Minor When an adult gives surety in a

contract of guarantee, only the adult is liable under the
contract. Minor is not responsible for any obligation.
Example
Ali a minor makes a contract with waqas. Ahmed gives surety
for Ali. The contract is valid.
10) Minors parents If an agreement is made by a minor
than parents of minor are not responsible for the payment.
The parents are responsible only when minor acts as an agent
of his parent.
Example Ali sends his son to buy goods from Jamaal, his son
bought goods from Jamaal. Ali is liable to make payment