According to the Indian Contract Act, 1872, a minor cannot be a party to the agreement, also an agreement involving a minor is deemed to be void-ab-initio. But on the other hand, a minor can gain partnership in a firm/company etc. where he/she is the beneficiary. However, there are certain points to be kept in mind while taking into consideration this concept. Some of them are as follows-

  1. A minor will only share profits, and is not answerable to any losses. That is, a minor can only earn profits but he/she is not deemed to contribute at the time when their partners face loss.
  2. A minor has all the rights of a full partner.
  3. He/She has the rights to obtain copies of account books of the firm, which contains information about his/her shares. They are not liable for 3rd party dept, but they can be made liable for their part of shares.
  4. A minor after becoming a major can rectify his/her contract with the company/firm. All the previous conditions a deemed to be null and void, therefore, the minor after attaining majority is expected to bear the losses as well.


Now we know what the Indian Contract Act, 1872 offers in the case of a minor. We looked at certain principles and tried our best to understand what the subject has to offer. Now as we all know that nothing in this world is perfect, so is the case with the contract act. The lawmakers have tried their level best to avoid any loopholes in the act. Below are some of the points which can be considered as some of the fallacies present in the Indian Contract Act-

1.              No one should gain from his/her own wrongdoings-

This is one of the principles of natural justice, but we have seen in numerous cases abovewhere a minor who has represented his/her age is not answerable. This is a major problem and one of the loopholes using which numerous wrongdoers get away easily.

2.              No relief for the one incurring losses-

As we have studied earlier, the one incurring loss can be compensated only when the object (which the minor purchased by their money) is traceable, if it is not traceable, the other party suffers unconditional loss. It is therefore expected to amend the Indian Contract Act , 1872 in such a way to insure justice, otherwise people may continue to face losses in the upcoming times.

3.              Lack of special laws in fraudulent cases-

A minor who knowingly misrepresents his/her age is also not punished under the current purview of the Indian Contract Act, 1872. This should not be the case as with the passage of time, the age of gaining maturity is decreasing, so the judgement should be announced by keeping in mind the maturity level of a minor. A minor who fraudulently misrepresents his/her age is expected to know what will be the consequences of their act, therefore they shouldn’t be allowed to escape using this loophole.


The Indian Contract Act, 1872 is one of the oldest contract related laws that are still applicable throughout the country. It contains numerous principles and concepts which are of very great use in day-to-day life. It is saddening how this field of law in neglected in the Indian Education system whereas it plays a vital role in each and every human being’s life. In the series titled “Minor’s Contract- Major problem with Indian Contract Act 1872” we studied the very basics about minor’s role in Contract. We got to know about the contract making procedure, different conditions, read some landmark cases and considered some important judgments. We also discussed about some loopholes in the Indian Contract Act, 1872 and tried to bring into light some simple ways to rectify these loopholes. We saw how even minimal alterations can alter the whole judgment. I hope that after going through this series, one would gain a rough idea about the contract act. We have gone through only a glass of Indian Contract Act, but the sea of the Indian Contract Act is very vast.

Aishwarya Says:

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