Amit, a minor was studyin g in a college. On 1st July, 2023 he took a loan of 1,00,000 from Bhavesh for payment of his college fees and to purchase…
CA Foundation · Business Laws · RTP · September 2024
Amit, a minor was studyin g in a college. On 1st July, 2023 he took a loan of 1,00,000 from Bhavesh for payment of his college fees and to purchase books and agreed to repay by 31st December, 2023. Amit possesses assets worth 9 lakhs. On due date, Amit fails to pay back the l oan to Bhavesh. Bhavesh now wants to recover the loan from Amit out of his (Amit’s) assets. Referring to the provisions of Indian Contract Act, 1872 decide whether Bhavesh would succeed.
Suggested Answer and Working Notes:
According to section 68 of Indian Contract Act,1872, if a person, incapable of entering into a contract, or any one whom he is legally bound to support, is supplied by another person with necessaries suited to his condition in life, the person who has furnished such supplies is entitled to be reimbursed from the property of such incapable person. In the instant case, since the loan given to Amit is for the necessaries suited to the conditions in life of the minor, his assets can be sued to reimburse Bhavesh. Hence, Bhavesh can proceed against the assets of Amit.
Topics: The Indian Contract Act, 1872
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