Examine to what extent a minor can be party to a negotiable instrument?
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A minor is considered as one who has not attained the majority - i.e 18 years. An agreement made with a minor is void. This means that it does not have a legal backing. It is not possible to enforce a contract made with a minor. The minor is also not in a position to ratify the contract even after he/she attains majority.
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A minor can be a party to a negotiable instrument by negotiating, endorsing and delivering the instrument for the purpose of uniting the parties concerned other than himself. The minor does not take any liability of himself but he can negotiate the instrument with the concerned parties.
Explanation:
- The minor can be party for negotiating a particular instrument for connecting the parties involved but he cannot bind himself to the instrument or taken any form of liability for it.
- The minor can be involved and act as a channel for the signing of the instrument and not be liable for it but the adults concerned with the instrument are liable for it.
- The minor can acquire the rights for the instrument but he cannot incur liability for the negotiable instrument.
To know more about negotiable instrument
What is negotiable instruments under negotiable instrument act,1881?
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