Doubt on minors contract

Corporate & Other Laws

If two minors entered into contract say mr A gives loan of 10k to mr B... But both of them are minors . If mr B fails to repay money then whats the court judgement.??? If court asks mrA to forgot that money he is minor he will not liable....then mr A also minor he becomes liable then.... Otherwise if court say mr B to repay money then also Mr B minor he becomes liable...... Accourding to my study minors are not liable then in this type of case who is liable????? Pleaz if anyone know what to do then answer me ð???ð???ð???

DJV narayana

CA Foundation

★ 1K+

16-Sep-21 08:35

532

Answers (3)

Yes minors are not liable but there are certain cases were a minor can be held liable for his acts though not him his personal assets are since both the party is minor the contract is void-ab-inito!

Aditya Shivam

CA Inter

★ 44K+

16-Sep-21 12:33

Any agreement with a minor is void since in this case both are minor this agreement cannot be enforced it's void ab initio. The minor who has taken money cannot be held liable to return it. And for your knowledge these type of questions would not be asked it would be good if you refer to examples and questions of rtps or mtps!

ASMA HANIYA

CA Final

★ 12K+

16-Sep-21 12:38

A contract with minor is void ab initio from the beginning so in the eyes of law there is no such contract has been entered..they can not enforce because this case is void from the beginning

Dhakshana Dhakshana

CFA L2

★ 18K+

16-Sep-21 13:54