Page 41 - DCOM103_COMMERCIAL_LAW

Commercial Law

Notes [Hint: The mortagage deed is void in the first three cases and B cannot claim the money. In

case (iii) if the money is traceable, the Court may ask the minor to restore it. In case (iv) the
minor’s property is liable under Sec. 68.]
7. A minor falsely representing himself to be of age, enters into an agreement to sell his
property to R and receives from him as price a sum of ` 72,000 in advance. Out of this
sum, the minor purchases a car for ` 60,000 and spends the rest on a pleasure trip. After
the minor has attained majority, R sues him for the conveyance of the property or in the
alterative for the refund of ` 72,000 and damages. How would you decide?
[Hint: A minor’s agreement is void (Mohiri Bibi v. Dharmodas Ghose). The Court may direct
the minor to restore the car to R.]
8. A minor who wanted to become a professional billiards player entered into a contract with
a famous billiards player and agreed to pay him a certain sum of money to learn the game.
Is he liable to pay?
[Hint: No. It is only his estate which is liable (Roberts v. Gray).]

9. A. an adult, said to M, a minor: “I will not pay the commission I promised you for selling
my magazines. You are a minor and cannot force me to pay.” Is A right?
[Hint: No. A minor can be a beneficiary or a promisee.]

10. A is aged 17 years. He enters into an agreement with B for hiring out certain machinery
belonging to B. After the agreement was signed, A backs out of the agreement and B wants
to enforce the same. Discuss with reasons whether B will succeed or not.
[Hint: B will not succeed.]

Answers: Self Assessment

1. minor 2. Section 68 3. liable
4. insolvent 5. agreement

3.6 Further Readings

Books G. Vijayaragavan Iyengar (2007), Introduction to Banking, Excel Books, New Delhi,
India.
S .S. Gulshan, Business Law, Third Edition, 2006, Excel Books, New Delhi.
S.S. Gulshan, Mercantile Law, Third Edition, 2006, Excel Books, New Delhi.

Online links http://business.gov.in/manage_business/contract_law.php

http://lawcommissionofi ndia.nic.in/1-50/Report13.pdf

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