Question

Principle: Every person, who is of the age of majority, is competent to contract according to the law to which he is subject.
Facts: A minor mortgaged his house in favour of Thakur Das, a money lender, to secure a loan of Rs. 20,000. A part of this, i.e., Rs. 10,500 was actually advanced to him. While considering the proposed advance, the attorney for the money lender received information that the plaintiff was still a minor. The minor then sued to cancel the mortgage on the ground of being underage at the time of execution. The money lender prayed for a refund of Rs. 10,300 from the minor.

• A. As a minor's contract is void, any money advanced to a minor can be recovered.
• B. A minor's contract is void \emph{ab initio}, any money advanced to a minor cannot be recovered.
• C. A minor's contract is voidable; any money advanced to a minor can be recovered.
• D. Advanced money can be recovered because the minor has given wrong information about his age.

Hint:

A contract with a minor is void \emph{ab initio}, not voidable, so restitution cannot be claimed unless covered under specific exceptions.

Answer 1

The Correct Option is B

Under the Indian Contract Act, a minor's contract is void \emph{ab initio}—meaning it is invalid from the outset. Since there is no legal obligation arising from such a contract, even money already advanced cannot be recovered from the minor. This protects minors from contractual liability.
Thus, the money lender cannot recover the Rs. 10,300 from the minor.