Business Law
Business Law Tutorial 6
1. Void contract is defined in Section 2(g) of Contracts act, 1950 as an agreement which is not enforceable by the law, which gives rise to no rights or obligations.
Under Section 11 of Contracts Act, 1950, every person is competent to contract who is of age of majority, and who is of sound mind and is not disqualifying from contracting by any law to which he is subject to.
The Age of Majority Act, 1971 states that the age of majority is 18. The Privy Council in MOhori Bibee v. Dhurmodas Ghose held that a minor cannot make a valid contract since such a contract is void. However there are exceptions:
• Contracts for necessaries • Contracts of scholarships • COntracts of insurance
Section 69 of Contracts Act, 1950 states that Necessaries are things that are essential to the existence and reasonable comfort of the minor and a minor must pay a reasonable price for necessaries that are suitable to the social status unless one can prove that one has adequate supply of it-Nash v. Inman.
The COntracts (Amendment) Act, 1976 provides that a scholarship agreement entered into by a minor is valid when it is granted by the federal or state government, a statutory anthority, or an educational institution such as a university.
Under the Insurance Act, 1963(Revised 1972), a minor above age of 10 may enter into a contract of insurance. HOwever, if he is below age of 16, he can only do so with the written consent of his parent or guardian.
In conclusion, contracts made by minor are generally void but there are exceptions for contracts for necessaries, contracts of scholarships, and contracts of insurance.
2. According to Section 11 of Contracts Act, 1950, every person is competent to contract who is of the age of majority, and who is of sound mind and is not disqualifying from contracting by any law to which he is subject to.
According to Age of Majority Act, 1971, the age of majority is 18. Seow Tee is 15, therefore he is a
1. Void contract is defined in Section 2(g) of Contracts act, 1950 as an agreement which is not enforceable by the law, which gives rise to no rights or obligations.
Under Section 11 of Contracts Act, 1950, every person is competent to contract who is of age of majority, and who is of sound mind and is not disqualifying from contracting by any law to which he is subject to.
The Age of Majority Act, 1971 states that the age of majority is 18. The Privy Council in MOhori Bibee v. Dhurmodas Ghose held that a minor cannot make a valid contract since such a contract is void. However there are exceptions:
• Contracts for necessaries • Contracts of scholarships • COntracts of insurance
Section 69 of Contracts Act, 1950 states that Necessaries are things that are essential to the existence and reasonable comfort of the minor and a minor must pay a reasonable price for necessaries that are suitable to the social status unless one can prove that one has adequate supply of it-Nash v. Inman.
The COntracts (Amendment) Act, 1976 provides that a scholarship agreement entered into by a minor is valid when it is granted by the federal or state government, a statutory anthority, or an educational institution such as a university.
Under the Insurance Act, 1963(Revised 1972), a minor above age of 10 may enter into a contract of insurance. HOwever, if he is below age of 16, he can only do so with the written consent of his parent or guardian.
In conclusion, contracts made by minor are generally void but there are exceptions for contracts for necessaries, contracts of scholarships, and contracts of insurance.
2. According to Section 11 of Contracts Act, 1950, every person is competent to contract who is of the age of majority, and who is of sound mind and is not disqualifying from contracting by any law to which he is subject to.
According to Age of Majority Act, 1971, the age of majority is 18. Seow Tee is 15, therefore he is a