Principle Every person who is of the age of majority is competent to contract according to the ...........

Indian Contract Act (ICA)1872 Formation of Contract

Principle: Every person, who is of the age of majority, is competent to contract according to the law to which he is subject.

Facts: A minor mortgaged his house in favour of Thakur Das, a money lender, to secure a loan of Rs. 20000. A part of this, i.e. Rs. 10500 was actually advanced to him. While considering the proposed advance, the attorney who was acting for the money lender, received information that the plaintiff was still a minor. Subsequently the minor commenced an action stating that he was underage when he executed the mortgage and the same should, therefore, be cancelled. He prayed for setting aside the mortgage. The mortgagee money lender prayed for the refund of Rs. 10500 from the minor.

As a minor’s contract is void, any money advanced to a minor can be recovered.

A minor’s contract is void ab initio, any money advanced to a minor cannot be recovered.

A minor’s contract is voidable; any money advanced to a minor can be recovered

Advanced money can be recovered because minor has given wrong information about his age

Explanation:

Section 11 of Indian Contract Acts provides the definition of “who are competent to contract".
In the case of Mohri Bibi v. Dharmadas Ghose it was held Ithat any agreement with a minor is void ab inito.
The contract with a minor is absolutely void