A minor fraudulently overstated his age and purchased a motor car after executing a promissory note in favour of the owner of the motor car for its price. The car owner compelled the minor to pay the amount of the promis
CS Executive · Economic, Business and Commercial Laws · PYQS · June 2019
A minor fraudulently overstated his age and purchased a motor car after executing a promissory note in favour of the owner of the motor car for its price. The car owner compelled the minor to pay the amount of the promissory note. Whether the car owner will succeed? Examine it with reference to Indian Contract Act, 1872 and Specific Relief Act, 1963.
Answer & Explanation:
According to the Indian Contract Act, 1872, a minor has no capacity to contract and minor's contract is absolutely void. Law of estoppel is not applicable to a minor and he can always plead his minority and is not estopped from doing so even where he had produced a loan or entered into some other contract by falsely representing that he was of full age, when in reality he was a minor. But where the loan was obtained by fraudulent representation by the minor or some property was sold by him and the transactions are set aside as being void, the Court on equitable grounds may direct the minor to restore the property to the other party. According to Section 33 of the Specific Relief Act, 1963 the Court may, if the minor has received any benefit under the agreement from the other party require him to restore, so far as may be such benefit to the other party, to the extent to which he or his estate has been benefited thereby. In present case, car owner will not succeed in getting the amount of promissory note but he can get back his motor car.
Topics: Indian Contract Act, 1872 / Specific Relief Act, 1963
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