Step 1: Understanding the Question:
The question is based on the Law of Contracts, specifically the capacity of parties to contract under the Indian Contract Act, 1872.
We need to identify the legal status of an agreement entered into by a minor.
Step 2: Key Concept or Approach:
Under Section 11 of the Indian Contract Act, 1872, every person is competent to contract who is of the age of majority.
A person who has not completed 18 years of age is a minor.
The legal status of a minor's agreement was established in a landmark judicial precedent.
Step 3: Detailed Explanation:
• The legal position of a minor's agreement was settled by the Privy Council in the landmark case of
Mohori Bibee v. Dharmodas Ghose (1903).
• The Privy Council held that a contract entered into by a minor is completely void from the very beginning.
• The legal term for "void from the beginning" is
"void ab initio".
• Key legal consequences of a minor's agreement in India:
- It cannot be ratified by the minor after attaining majority.
- The rule of estoppel does not apply against a minor.
- A minor cannot be forced to pay back money received under a void agreement (except under Section 68 for "necessaries" supplied to them).
• Let us evaluate the options:
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Option (A): "void ab initio" - This is correct.
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Option (B) and (C): "valid automatically..." or "partially valid..." - These are incorrect because a void agreement cannot be ratified or validated later.
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Option (D): "valid after the demise..." - This is false. Death does not validate a void contract.
Step 4: Final Answer:
A contract entered into by a minor is void ab initio, which corresponds to Option (A).