Can a Minor be a Partner?
A contract is an agreement that is enforceable by law, and for any agreement to be enforceable, it must fulfill all the essentials of a valid contract. Attaining a majority is one of the prerequisites of a valid contract. However, according to Section 30 of the Indian Partnership Act, 1932 a minor can be admitted into the benefits of the partnership with the consent of all the partners. This section also states that the minor is not liable for any of his/her acts within the partnership, and he/she will only have the benefit of the partnership.
Minor: Meaning, Minor’s Agreements and Exception
The Indian Contract Act, 1872 defines a contract as any agreement that is enforceable by law. According to the act, there are several essentials of a valid contract, and if any of these essentials are missing, then the agreement cannot be called a valid contract. Some of the main essentials of a valid contract are offer and acceptance, lawful consideration, lawful object, intention to create a contract, and competence of the parties. The competence of parties to enter into a contract is explained in section 11 of the Indian Contract Act, of 1872.
Meaning of ‘Contract’ as per The Indian Contract Act, 1872
The Indian Contract Act, 1872 defines the term “Contract” under its Section 2(h) as “An agreement enforceable by law”. In other words, we can say that a contract is anything that is an agreement and enforceable by the law of the land.
Geeky Takeaways:
- Any contract by a minor is a void contract and cannot be enforceable by law.
- According to the laws of the country attaining the age of majority is one of the essential requirements of a valid contract.
- The Indian Contract Act, 1872 explains that any person who has attained the age of majority as per the law, is of sound mind, and is not disqualified by law to agree is competent for entering into any contract.
- The Indian Apprentices Act, 1850 allows minors to enter into a contract in certain exceptional cases.
Table of Content
- Who is a Minor?
- Case Law: Mohiri Bibi v. Dharmodas Ghosh
- Effects of Minor’s Agreement
- Exception to General Rule
- Can a Minor be a Partner?
- Conclusion
- Minor under Indian Contract Act- FAQs