pashyanti (legal manager) 14 March 2012

Purchase by minor

Dear Experts,

Greetings of the Day!

Pls. help me to sort out the matter on urgent basis.

We are a construction co. and one of our client want to execute an agreemnet to Sale in his favour by us.

The problem is that, he is the applicant and want to enter the name of his two childrens who are minors as co-applicants.

My query is:

what are the legal consequences that are faced by our company in future on such sale?

what are the legal consequences that are faced by the client in future on such purchase?

Reply me urgently, as i'm not able to sort out the matter.

Regards

Pashyanti

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2 Replies

Adv.R.P.Chugh (Advocate/Legal Consultant (rpchughadvocatesupremecourt@hotmail.com)) 14 March 2012

Dear Pashyanti,

You seem to be suggesting that the client wants you (the company) to execute the agreement in favour of applicant and two minor children.

Though a minor cannot contract (S.11 of the Indian Contract Act, 1872) there is nothing that prohibits him from being a transferee in a contract of transfer of property (S.5 TPA) - though not the transferors.

The downside of this to the company may be that in event of a dispute tommorrow - the company may have trouble enforcing this against the co-applicants - however the co-applicant (children) would be at liberty to enforce this agreement against the company (S.20(4) SRA) and the law acting under its parens patriae jurisdiction would support their case at all stages.