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A minor claims to be an adult, borrows Rs. 10,000 and signs a mortgage in the lender’s favour. The…

Section 11 of the Indian Contract Act, 1872 requires contractual capacity, so the minor’s own mortgage is void. Under section 33(2)(b) of the Specific Relief Act, 1963, the…

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A minor claims to be an adult, borrows Rs. 10,000 and signs a mortgage in the lender’s favour. The lender sues to enforce it. What can the court do if the minor establishes his incapacity to contract?

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Answer and explanation

Correct answer C

Section 11 of the Indian Contract Act, 1872 requires contractual capacity, so the minor’s own mortgage is void.

Under section 33(2)(b) of the Specific Relief Act, 1963, the court may order restoration to the extent the minor or his estate benefited.

This restitution is distinct from a decree enforcing the loan or mortgage. The amount advanced alone does not establish the recoverable amount.

Option feedback

Option A

Minority makes the minor’s own agreement void from the outset.

Option B

Misrepresenting age does not confer the contractual capacity required to create an enforceable mortgage.

Option C

A court may consider discretionary restitution measured by the benefit to the minor or his estate, even though it cannot enforce the mortgage.

Option D

Section 33(2)(b) allows limited restitution where the minor or his estate benefited.

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