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Principle: A contract entered into by a minor is void ab initio. Facts: M, aged 17, sells his bicycle to A and receives Rs 2,000. A few months later M turns 18 and demands the bicycle back, offering to return the Rs 2,000. Which proposition is MOST consistent with the principle?
AThe contract is void from the start; M can recover the bicycle and must return Rs 2,000 on equitable principles
BThe contract is fully valid as M is now an adult
CThe contract becomes valid on M's eighteenth birthday by ratification
DThe contract is voidable at M's option
Answer & Solution
Correct answer: A. The contract is void from the start; M can recover the bicycle and must return Rs 2,000 on equitable principles
Mohori Bibee v Dharmodas Ghose (1903): a minor's contract is void ab initio (not voidable). It cannot be ratified on attaining majority (so option D fails). Restitution of benefits received is governed by equitable principles.
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