X', a minor misrepresenting that he is a major induces 'Y' to enter into a contract. 'X' is:

Question

Accepted Answer

The correct option is 2:
Not liable on the contract.

The legal position regarding contracts with a minor is firmly established in contract law, stemming from the landmark case of *Mohori Bibee v. Dharmodas Ghose*. According to this principle, any agreement entered into by a minor is considered *void ab initio*, meaning it is null and void from the very beginning. The law is designed to protect the minor from contractual liabilities, viewing them as being incapable of understanding the implications of a contract. Even when a minor, 'X', fraudulently misrepresents their age and induces 'Y' to contract, the contract remains void, and 'X' cannot be held personally liable for the agreement. The protective shield of minority cannot be lifted even in cases of fraud, ensuring the minor faces no contractual obligation.

The incorrect option is 1:
Liable on the contract.
This option is incorrect because a minor lacks the capacity to contract, which is one of the essential elements of a valid contract. Since the agreement is void from the start (*void ab initio*), the minor can never be made 'liable' on that contract. To enforce contractual liability would defeat the fundamental purpose of the law, which is to protect the interests of the minor.

The incorrect option is 3:
Liable to pay compensation.
This is incorrect because the minor cannot be made liable for an associated tort (a civil wrong like misrepresentation or fraud) if enforcing the tort is equivalent to indirectly enforcing a void contract. While the doctrine of restitution may apply in specific cases, where the minor is compelled to restore the specific property or money obtained by fraud, they are not generally liable to pay monetary compensation or damages for the breach or the fraud itself, as this would circumvent the protection provided by law.

The incorrect option is 4:
Liable on the contract on attaining majority.
This option is wrong because an agreement that is void *ab initio* can never be rectified or ratified later. Since the original agreement was a nullity in the eyes of the law, there is simply nothing for the minor to confirm or validate once they attain the age of majority. Ratification applies only to voidable contracts, not to contracts that are void from their inception.