Legal analysis of a few statements as per Indian Contract Act, 1872
1. A contract is made when a person promises to discover treasure by magic.
Let’s suppose B agrees with A to discover treasure by magic. The agreement is void. This act is
void because it is impossible or unlawful to do.
Contract to do an act afterwards becoming impossible or unlawful.—A contract to do an act
which, after the contract is made, becomes impossible, or, by reason of some event which the
promisor could not prevent, unlawful, becomes void when the act becomes impossible or
unlawful. There should be a compensation for loss through non-performance of act known to be
impossible or unlawful.—Where A person has promised to do something which he knew, or, with
reasonable diligence, might have known, and which the B did not know, to be impossible or
unlawful, such promisor (A) must make compensation to such promise (B) for any loss which
such promisee sustains through the nonperformance of the promise.
2. A contract is not made when a person takes a seat in the public bus.
As per section 9 of the Indian Contract Act, 1872, in this case there is an implied offer to public at
large by the transport company to carry passengers from one destination to another. There
should be an implied acceptance of the offer on his part but because the contract is not made it
means he rejected the offer and the contract is not enforceable.
3. A void agreement is enforceable at the option of one of the parties.
The definition of the act states that a voidable contract is enforceable by law at the option of
one or more parties but not at option of the other parties. A voidable contract may be
considered valid if it is not cancelled by the aggrieved party within a reasonable time. The
contract continues to be good and enforceable unless it is repudiated by the aggrieved party.
4. A contract is made when a person submits a bid at a public auction.
Legally, an auction is defined as the “public sale of property to the highest bidder. Generally, an
auction is complete when the bid is accepted. A binding contract is created by the auction. The
seller can also set a reserve price in advance. If the final bid does not reach the reserve price, the
property remains unsold.
5. A contract is made when a person orally promises to pay Rs.500.
This is because most people think that all contracts must be made in writing before they can be
said to be valid. Our contract law however provides that oral promise given by a party to
another can also form a valid contract as long.
6. A woman does not have the same contractual capacity as a man.
According to Section 11 of the Indian Contract Act, 1972, the only barriers to contractual capacity are that a person must be of the age of majority at 18 years of age, they must be of a sound mind and they must not be disqualified from entering a contract by any law they are subject to. The list of disqualified categories includes alien enemies, convicts, insolvents, foreign sovereigns and ambassadors. Thus, women have the same contractual capacity as men in most cases except for the case of pardanashin women. A pardanashin woman is one who observes complete reclusion due to the custom of the community to which she belongs. In most cases, this is taken as them being in a state of undue influence and not being unable to understand contracts and thus they do not have the capacity to contract. Otherwise, women and men are equal in their capacity to contract.
7. A minor who is of sound mind can enter into a contract.
According to Section 11 of the Indian Contract Act, 1972, the only barriers to
contractual capacity are that a person must be of the age of majority at 18 years of age, they
must be of a sound mind and they must not be disqualified from entering a contract by any
law they are subject to. In India, 18 years is the age of majority. Minors below the age of 18
years do not have the capacity to enter into a contract. Even after a minor gains majority, any
agreements made by them before the age of majority are not accepted as contracts by law. So
any contract made with a minor is void ab initio. A sound mind is another prerequisite for
entering into a contract, however a minor with a sound mind does not have contractual
capacity. If on becoming a major, a new contract is made, then the new promise will be
binding.
8. A minor can be a promisee.
If a contract is beneficial to a minor, it can be enforced by them. In a contract, a minor
can thus be a promisee or a payee but not a promisor. If a contract has been broken i.e. when
the minor has fulfilled their obligations as a promisee but the other party has not, the contract
can be enforced in court. Therefore, a minor can enforce a promissory note executed in their
favour.
9. A minor can be a partner of the firm.
As per the Section 11 of the Indian Contract Act, minors cannot enter into a contract.
Since the way of a contract is to form partnerships, this should suggest that minors cannot be
partners in a firm. However, as an exception as per Section 30 of the Indian Partnership Act,
minors can be admitted to the benefits of a partnership with the consent of all current partners
but they will not be liable for any losses.
10. A minor can ratify a contract after attaining majority.
According to Section 11 of the Indian Contract Act, 1972, the only barriers to
contractual capacity are that a person must be of the age of majority at 18 years of age, they
must be of a sound mind and they must not be disqualified from entering a contract by any
law they are subject to. In India, 18 years is the age of majority. Minors below the age of 18
years do not have the capacity to enter into a contract. So, any contract made with a minor is
considered void ab initio. Since the agreement is already void, it cannot be ratified by minors
after attaining the age of majority and the consideration given to minors during minority
cannot be a valid consideration for the promise made by them after attaining the majority.
