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A person below the age of majority personally promises to repay a loan under an agreement made in their…

Sections 10 and 11 require competent contracting parties. A minor lacks capacity to make the personally binding repayment agreement in the question, so it is void from the…

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A person below the age of majority personally promises to repay a loan under an agreement made in their own name. What is the status of that agreement under the Indian Contract Act, 1872?

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Answer and explanation

Correct answer B

Sections 10 and 11 require competent contracting parties. A minor lacks capacity to make the personally binding repayment agreement in the question, so it is void from the outset.

Option feedback

Option A

Sections 10 and 11 prevent this personally binding agreement from being valid.

Option B

The minor's lack of contractual capacity makes the agreement void from the outset.

Option C

The lender does not get an election to enforce this agreement.

Option D

The agreement is void without any election by the minor.

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