Why a Minor Cannot Enter into a Valid Contract?

According to the Indian Contract Act, 1872, a valid contract requires that both parties must be competent to contract. Competence includes:

• Being of sound mind,

• Not disqualified by law, and

• Being of the age of majority.

Since a minor has not attained the age of majority, they lack the capacity to contract. Any agreement with a minor is therefore considered void ab initio (invalid from the beginning).

Key Legal Principles on Minor’s Contract

1. Void from the Start – A contract made by a minor is not merely voidable, it is entirely void.

2. No Ratification on Majority – A contract entered into during minority cannot be ratified by the minor after attaining majority.

3. No Estoppel – Even if a minor falsely represents their age, they cannot be bound by the contract.

4. Beneficial Contracts – A minor can, however, benefit from contracts made for their advantage, such as education, apprenticeship, or medical services.

5. Restitution in Some Cases – If a minor has received benefits (like money or property), the court may order restitution to prevent unjust enrichment, but not enforce the contract itself.

Example

If a 17-year-old agrees to sell land or purchase a car, such an agreement is not enforceable in law. However, if the same minor enters into an apprenticeship agreement for skill development, it may be valid since it is for their benefit.

Why This Law is Important?

The principle is based on the idea that a minor may lack the maturity to understand the consequences of contracts. This protects them from exploitation while also ensuring fairness in commercial transactions.

✅ Takeaway: Any agreement with a minor in India is void and unenforceable, except for those made for the minor’s benefit. Before entering into property, business, or financial transactions, always check the age and competence of parties involved.