What must be present for a contract to be valid?
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What must be present for a contract to be valid?
The basic elements required for the agreement to be a legally enforceable contract are: mutual assent, expressed by a valid offer and acceptance; adequate consideration; capacity; and legality.
When there is no consent at all the agreement is said?
Bilateral Mistake (Section 21) Bilateral mistakes are also sometimes referred to as mutual or common mistakes. All the parties do not agree to the same thing and in the same way, which is the concept of consent. Since there is no consent, the contract is null and void.
Can minor be an agent?
Agent and principal are defined under Section 182 of the Indian Contract Act, 1872. According to this section any person can become an agent i.e. there is no need to have a contractual capacity to become an agent. Therefore, a minor can also act as an agent.
Is a contract with a minor void?
Minors (those under the age of 18, in most states) lack the capacity to make a contract. So a minor who signs a contract can either honor the deal or void the contract. In most states, if a minor turns 18 and hasn’t done anything to void the contract, then the contract can no longer be voided.
What is minor agreement?
A minor’s agreement is when a minor enters into an agreement (which is void ab initio according to the law). On the other hand, section 11 of the Indian Contract Act says that a minor (below 18 years of age) is, therefore, not competent to enter into the contract.
Who is a minor What are the consequences of a contract by a minor?
Anyone who is under the age of 18 is known as a minor. Every agreement with minors is void from the beginning. it is void and null hence there is no legal obligations arising from a minor’s agreement and contract per se hence nobody who has not attained the age of majority can enter into a contract.
What happens if a minor lies about their age on a contract?
Generally speaking, a minor may disaffirm a contract at any time during minority or for a reasonable time after the minor comes of age. When a minor disaffirms a contract, all property that he or she has transferred as consideration can be recovered — even if it was subsequently transferred to a third party.
What is the contractual capacity of a minor?
Children under the age of seven have no contractual capacity; a natural or legal guardian will have to contract on their behalf. After children have turned seven, the general rule is that a contract will not be enforceable without their guardians’ consent. Exceptions to this rule are created by acts of parliament.
What is minor business law?
A minor is an individual who has not attained the age of 18 years and the attaining majority for every contract is an essential condition precedent. As per Indian law, minor’s agreement stands void, which means that it has no stand whatsoever in the eyes of the law.
