Which of the following statement is correct?

Solution

From section 10 and section 11 of the Indian Contract Act, it is clear that the person, by reason of infancy, is incompetent to contract. Consequently, a minor’s agreement is void ab initio and cannot be enforced by either of the parties to the contract. Ratification of minor’s agreement: An agreement with a minor is void and therefore, it cannot be ratified by him after attaining the age of majority and the consideration given to the minor during minority cannot be a valid consideration for the promise made by him after attaining the majority. Further Section 12 states that: What is a sound mind for the purposes of contracting: A person is said to be of sound mind for the purpose of making a contract, if, at the time when he makes it, he is capable of understanding it and of forming a rational judgment as to its effect upon his interests. A person who is usually of unsound mind, but occasionally of sound mind, may make a contract when he is of sound mind. A person who is usually of sound mind, but occasionally of unsound mind, may not make a contract when he is of unsound mind.