Case Law: Mohiri Bibi v. Dharmodas Ghosh

Facts of the Case: In this case, Dharmodas Ghosh was the plaintiff and had taken a loan by giving his property as a mortgage to a moneylender. He entered into the agreement while he was a minor. The defendant’s attorney has knowledge regarding the age of the plaintiff and still enters into an agreement with him. The plaintiff has paid â‚č8000 to the defendant but has refused to pay any further amount. The plaintiff along with his mother who is his legal guardian initiated a case against the defendant.

Judgement of the Court: The court in this case has declared that there is no contract between the plaintiff and the defendant and the defendant cannot force the plaintiff to repay the amount. At the time of the agreement, the plaintiff was a minor and could not enter into any contract which is enforceable by law. The agreement between the plaintiff and the defendant is void and the plaintiff need not pay the amount.

Minor: Meaning, Minor’s Agreements and Exception

The Indian Contract Act, 1872 defines a contract as any agreement that is enforceable by law. According to the act, there are several essentials of a valid contract, and if any of these essentials are missing, then the agreement cannot be called a valid contract. Some of the main essentials of a valid contract are offer and acceptance, lawful consideration, lawful object, intention to create a contract, and competence of the parties. The competence of parties to enter into a contract is explained in section 11 of the Indian Contract Act, of 1872.

Meaning of ‘Contract’ as per The Indian Contract Act, 1872

The Indian Contract Act, 1872 defines the term “Contract” under its Section 2(h) as “An agreement enforceable by law”. In other words, we can say that a contract is anything that is an agreement and enforceable by the law of the land.

Geeky Takeaways:

  • Any contract by a minor is a void contract and cannot be enforceable by law.
  • According to the laws of the country attaining the age of majority is one of the essential requirements of a valid contract.
  • The Indian Contract Act, 1872 explains that any person who has attained the age of majority as per the law, is of sound mind, and is not disqualified by law to agree is competent for entering into any contract.
  • The Indian Apprentices Act, 1850 allows minors to enter into a contract in certain exceptional cases.

Table of Content

  • Who is a Minor?
  • Case Law: Mohiri Bibi v. Dharmodas Ghosh
  • Effects of Minor’s Agreement
  • Exception to General Rule
  • Can a Minor be a Partner?
  • Conclusion
  • Minor under Indian Contract Act- FAQs

Similar Reads

Who is a Minor?

According to the laws of the country, any person who has not completed the age of majority is a minor. The Indian Majority Act, 1875 defines majority under the act. Under this section, it is written that a person shall attain the age of majority only when he/she shall complete 18 years....

Case Law: Mohiri Bibi v. Dharmodas Ghosh

Facts of the Case: In this case, Dharmodas Ghosh was the plaintiff and had taken a loan by giving his property as a mortgage to a moneylender. He entered into the agreement while he was a minor. The defendant’s attorney has knowledge regarding the age of the plaintiff and still enters into an agreement with him. The plaintiff has paid â‚č8000 to the defendant but has refused to pay any further amount. The plaintiff along with his mother who is his legal guardian initiated a case against the defendant....

Effects of Minor’s Agreement

1. No Liability arising out of either Tort/Contract: In Indian law, a minor is not allowed to enter into any contract, and all the contracts made by them are void, and no one can enforce such contract. In Johnson V Pye, the court explained that even if the minor has fraudulently obtained a loan from the other person on a contract, the other party cannot enforce such a contract because the other party is a minor. The High Court of Calcutta also upheld this judgment and said a contract cannot be converted into a tort to sue a minor....

Exception to General Rule

According to the law of our country, any contract with a minor is void. This rule is established in our country to protect minors from any kind of contractual liabilities. But certain exceptions to this rule are explained below:...

Can a Minor be a Partner?

A contract is an agreement that is enforceable by law, and for any agreement to be enforceable, it must fulfill all the essentials of a valid contract. Attaining a majority is one of the prerequisites of a valid contract. However, according to Section 30 of the Indian Partnership Act, 1932 a minor can be admitted into the benefits of the partnership with the consent of all the partners. This section also states that the minor is not liable for any of his/her acts within the partnership, and he/she will only have the benefit of the partnership....

Conclusion

The Indian Contract Act, 1872 does not allow minors to enter into any kind of contractual relationship, and thus, any contract by a minor is void. The government has established this law only to protect minors. They protect the minors from any contractual relationship that they will not regret. According to the act, minors are incapable of giving their assent to such a contractual relationship....

Minor under Indian Contract Act- FAQs

What is a Contract?...

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