Question

LEGAL PRINCIPLES: 1. Parties to contract should be capable of entering in to contract, only then they can lay the foundation of a valid contract. 2. Every person is competent to contract who is of the age of majority, FACTUAL SITUATION: A minor agreed with B to become a tenant of his house and to pay Rs, 1,000 for the furniture therein. He paid Rs. 800 in cash and gave a promissory note for the balance. A occupied the premises and used the furniture for some months and then brought an action for refund of consideration, in this case DECISION: (Answer the question after reading the following paragraph.)

LEGAL PRINCIPLES: 1. Parties to contract should be capable of entering in to contract, only then they can lay the foundation of a valid contract. 2. Every person is competent to contract who is of the age of majority, FACTUAL SITUATION: A minor agreed with B to become a tenant of his house and to pay Rs, 1,000 for the furniture therein. He paid Rs. 800 in cash and gave a promissory note for the balance. A occupied the premises and used the furniture for some months and then brought an action for refund of consideration, in this case DECISION: (Answer the question after reading the following paragraph.)

Direction: Given below is a statement of legal principle followed by a factual situation. Apply the principle to the facts given below and select the most appropriate answer.

Option A: A is liable to pay Rs. 1,000
Option B: A is liable to pay remaining Rs. 200
Option C: A is liable to refund of Rs. 800
Option D: Neither B is liable to refund Rs. 800 nor A is under obligation to pay Rs. 200.

Correct Answer

Option: d

Explanation

According to Section 11 of the Indian Contract Act Every person is competent to contract who is of the age of majority according to the law to which he is subject.

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