A very important case that explains this problem is Mohiri Bibi v. Dharmodas Ghose. In this case, a miner had borrowed money from a lender by pawning his house. Finally, under section 11 of the Indian Contracts Act, a minor cannot enter into a contract. In Mohori Bibee v. Dharmodas Ghose, it was held that any contract to which a minor is a party is null and void from the outset and of no effect. This was an important decision that clarified the nature of the minor`s agreement. Therefore, if a minor enters into a contract, he will not be found guilty, will not be obliged to reimburse if there is a breach of contract and he will not have the right to recover a contract if he becomes of age. In general, anyone who enters into contracts with an infant or minor seeks to do so at their own risk. This means that the law gives young children the opportunity to invalidate or terminate the contract at their discretion. The regime`s most common justification is to protect minors from taking on obligations they cannot understand. It is obvious that this will lead to severe results, so some general exceptions have been created.

When a minor reaches the age of majority and is still under contract, he or she has a limited reasonable period of time to accept or invalidate the contract. (6) Parents or guardians of minors may name them in contracts only if it is beneficial to them. But even then, the minor cannot be held personally liable. New York offers special rules for minor insurance contracts. In particular, for example, if the minor is still in possession of what he has provided by the other party in the contract, he must return what he received before the contract can be declared invalid. If the property is not returned to the other party, the contract cannot become invalid. In general, it is assumed that minors do not have the legal capacity to conclude the contract, which is why contracts with minors can be declared null and void. However, only the minor has the right to withdraw from the contract. The other party does not have that capability.

Exceptions to this rule were introduced to deter minors from abusing their ability to cancel contracts. Other implications are that the parents of a minor will not be held liable if the child lies about his age, but they will be held liable if the minor entered into the contract with the consent of his parents. A minor cannot declare bankruptcy. A minor may not own, acquire or sell business shares, but an adult, who is the minor`s guardian, may do so on his or her behalf. A minor is a person under the age of eighteen and the age of majority is a prerequisite for any contract. The Indian Majority Act of 1875[4] states that the age of majority in India is 18. A minor is a person living in India who has not yet reached the age of eighteen. Under Indian law, a minor`s agreement is void, which means that it has no legal validity and is void and invalid because neither party can enforce it. Even if he wins a majority, he will not be able to sign the same agreement. (c) However, certain contracts may not be declared null and void. In particular, a minor remains liable for certain contractual obligations: in this case, the Privy Council has enacted the law that a minor`s contact or agreement is “completely void”, and it has been carefully applied and is still under development.

Section 10[3] of the Indian Treaties Act of 1872 defines what constitutes a contract, while section 11[4] defines who has jurisdiction over contracts. An infant`s almost unlimited right to terminate contracts poses significant problems for the entertainment industry due to the large number of extensive contracts with minors. In recognition of this problem, California and then New York passed laws requiring court approval of a minor`s entertainment industry contracts that limited the minor`s right to refuse. If a contract is valid but has the possibility of being declared invalid by one of the parties concerned, it is called a “cancellable contract”. Before entering into a contract, a minor must be able to fully understand it. If an adult enters into a contract with an infant who does not have the capacity to do so, the infant reserves the right to cancel that contract. (5) The rule of forfeiture of evidence does not apply to minors arising from contractual obligations. In other words, even if a minor enters into a contract claiming the age of majority, no legal obligation can arise against him. If a minor falsely claims to be an adult and enters into a contract, he or she may be asked to return property in his or her possession that was part of the contract if it is still in his or her custody (not sold/given to someone else or converted) and there is no consideration (money). Otherwise, it would mean the performance of a void contract, such as a miner`s agreement. [8] According to the court judgment, any person under the age of 18 or under the age of 18 (i.e.

minors), do not intend to enter into a contract or make important decisions.