The Minors Contract Act of 1987 is a piece of legislation that has garnered a lot of attention in recent years. Passed by the Indian legislature, the act aims to provide protection to minors who enter into contracts. In this article, we will discuss the key provisions of the Minors Contract Act of 1987 and its impact on businesses and the legal system.

Definition of minors:

Under the Minors Contract Act of 1987, a minor is defined as an individual who has not yet reached the age of 18. The act recognizes that minors lack the capacity to enter into contracts and therefore, requires that their contracts be treated differently from those of adults.

Effect of minor`s contract:

The effect of a minor`s contract is that it is voidable at the option of the minor. This means that the minor can either choose to uphold the contract or reject it. The rationale behind this provision is that a minor may not have the mental capacity to fully understand the terms and conditions of the contract they are signing.

Exceptions to the rule:

There are some exceptions to the rule that minors` contracts are voidable. These include contracts for necessities such as food, clothing, and shelter. Additionally, contracts entered into by minors for educational purposes or for employment (with certain restrictions) are also considered valid.

Rights of the minor:

The Minors Contract Act of 1987 grants certain rights to minors. For example, if a minor chooses to reject a contract, they are entitled to recover any property or money that they may have given to the other party. The minor is also not liable for any damages resulting from the breach of the contract.

Impact on businesses:

The Minors Contract Act of 1987 has a significant impact on businesses. All businesses that deal with minors must be aware of the provisions of the act and ensure that they do not enter into contracts that may be voidable. Failure to comply with the act may result in legal action against the business.

Conclusion:

The Minors Contract Act of 1987 is an important piece of legislation that recognizes the vulnerability of minors in the contract law context. While it sets out some strict rules, it is ultimately intended to protect minors from exploitation. Businesses that deal with minors must be aware of the provisions of the act and ensure that they comply with the law.