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A person who has not reached the age of majority personally signs an agreement that purports to bind…

Sections 10 and 11 require competent contracting parties. The minor’s own purported promise to repay does not create a binding contract. The agreement is void from the outset.

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A person who has not reached the age of majority personally signs an agreement that purports to bind that person to repay a loan. What is its status under the Indian Contract Act, 1872?

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Answer and explanation

Correct answer B

Sections 10 and 11 require competent contracting parties. The minor’s own purported promise to repay does not create a binding contract. The agreement is void from the outset.

Option feedback

Option A

The lender’s adulthood does not cure the borrower’s incapacity.

Option B

The minor’s personal undertaking is void for want of contractual capacity.

Option C

A voidable contract would remain enforceable at a party’s option. The minor’s undertaking is void.

Option D

The lender cannot acquire an option to enforce an agreement that never bound the minor.

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