‘A’ Minor takes a loan of Rs.4,000/- from ‘B’ during his minority, on attaining majority, he applies to ‘B’ for a further loan of Rs.3,000/- ‘B’ gives this loan and obtains from ‘A’ a combined promissory note of Rs.7,000/- for the two loans. This is considered as:

Correct option is B

1. Loan taken during minority (Rs. 4,000/-):
   • Section 11 of the Indian Contract Act, 1872 states that a person must be of the age of majority to be competent to contract. Since 'A' was a minor when he took the loan of Rs. 4,000, the contract for this loan is considered void.
2. Loan taken after attaining majority (Rs. 3,000/-):
   • Upon attaining majority, 'A' is legally competent to enter into contracts. The loan of Rs. 3,000 taken after reaching majority is valid.
3. Combined Promissory Note (Rs. 7,000/-):
   • The combined promissory note of Rs. 7,000 includes both loans: the first loan of Rs. 4,000 (which is void) and the second loan of Rs. 3,000 (which is valid). However, once 'A' attains majority and enters into the second loan, he is legally competent to contract for the second loan, which makes the overall contract valid for the second loan portion. The first loan (Rs. 4,000) is void, but the second part of the promissory note (Rs. 3,000) remains valid.

Conclusion:

Even though the first loan is void, the contract involving the second loan (Rs. 3,000) is valid. Since the contract involves both a void and valid part, the valid portion is enforceable, and the overall contract is considered valid.

Information Booster:

• Section 11 of the Indian Contract Act, 1872 makes it clear that a contract with a minor is void. However, once the minor attains the age of majority, they are legally capable of entering into contracts.
• In this case, the second loan of Rs. 3,000/- taken after 'A' attained majority is legally valid and enforceable. While the Rs. 4,000 loan taken during minority is void, it does not invalidate the second loan entered into after 'A' reached the age of majority.

Additional Information:

1. (a) Void Contract: While the loan taken during minority is void, the contract overall is not entirely void because the second loan is valid once 'A' attains majority. The contract is only partially void.
2. (c) Illegal Contract: There is nothing in this scenario that makes the contract illegal. The issue here is the minor’s status when taking the first loan, not that the contract involves illegal activity.
3. (d) Unilateral Contract: A unilateral contract involves one party making a promise in exchange for the other party’s act. This situation involves a bilateral contract, as both 'A' and 'B' are making promises (to repay the loan and to give the loan), so it is not unilateral.