MohoriBibbee v. DharmodasGhose

 


MohoriBibbee v. DharmodasGhose [(1903) 30 Cal 539] CASECOMMENT

Abstract

One of the essential elements of a valid contract is the competence of the parties to make a

contract. Section 11 of the Indian Contract Act,1872, defines the capacity to contract of a person

to be dependent on three aspects; attaining the age of majority, being of sound mind, and not

disqualified from entering into a contract by any law that he is subject to

According to Section 11, “Every person is competent to contract who is of the age of majority

according to the law to which he is subject, and who is of sound mind and is not disqualified

from contracting by any law to which he is subject.”

So, we have three main aspects:

1. Attaining the age of majority

2. Being of sound mind

3. Not disqualified from entering into a contract by any law that he is subject to

Introduction

The case of MohoriBibbee v. DharmodasGhose is considered as a case of significant importance in the sphere of studying contract and its different aspects as it covers the entire scope of a minor’s involvement and position in any agreement. This case is primarily concerned with a contract that involved a minor as a party to their contract. In India, an agreement or contract with a minor is void ab-initio, which means any contract with a minor is void from the start and holds no value in front of the eyes of the law and cannot be enforced as such.

These rules and restrictions are in place because such people do not have the legal competence to enter into a contract or agreement as they are considered minors. According to the courts, anyone under the age of 18 or who has not reached the age of 18 (i.e., a minor) cannot intend to form a contract or make major decisions related to any contract or an agreement herein.

This case has essentially taught us that, because minors are legally incapable of giving their consent, they must be entitled to or supplied with protection in their relationships with adults. Following this instance, every attempt to create a contract or agreement with the minor was null and void from the very start. If we go through our books the Indian Contract Act, 1872 clearly states under Section 11(4) who are the people who are deemed fit and competent to enter into a contract and who else is barred from the same.

Keywords

Competence, Legality, Minors, Valid contract, Necessaries, Compensation, Agreement

Facts of the case

The respondent DharmodasGhose on the 20th July of 1895 executed a mortgage deed in the favour of a moneylender named BrahmoDutt carrying on business in Calcutta and elsewhere but throughout the transaction BrahmoDutt was absent from the Calcutta. The business was carried out for him by his attorney KedarNathMitter. The respondent mortgaged immovable property his house for the repayment of Rs. 20,000 at the rate of 12% (Twelve Percent) interest, the amount increased in the dispute. At that time the respondent was a minor. On the 15th of July 1895, KedarNath received information that the respondent was still minor through a letter sent by BhupendraNath Bose, an attorney. KedarNath denied receiving any conclusive. 

ISSUE

1. Can a minor validly execute a mortgage deed?

2. What is the effect of minor’s misrepresentation of his age?

3. If the deed of mortgage was cancelled, can the court order the minor to refund the amount to lender?

Legal provision involved

SEC 10 SEC 11 SEC 64, SEC 65, SEC 68 and SEC 115 of Indian evidence act 1872SEC 38 AND SEC41 of specific Relief act 1963SEC 4 and SEC 7 of TRANSFER ORF PROPERTY ACT 1882

Judgment

First, the trial court held that the contract between the Plaintiff and Defendant was void because at the time of the contract the Plaintiff was a minor. 

Later Defendant filed an appeal in the Calcutta High Court where the High Court agreed with the verdict of the trial court and dismissed the appeal. 

Again, Brahmo Dutta went to the Privy Council to appeal and the Privy Council also dismissed the case and held that the contract between appellant and respondent is void. 

The final decision passed by The Privy Council was: 

The contract with any minor is void-ab-initio (from the beginning). 

The DharmodasGhose was not held liable for the repayment of the loan because the contract was void-ab-initio.

Opinion

·       In my point of view, any contract with a minor should be withheld null and void because a minor cannot have sound reasoning and understanding for the same and as such his consent cannot be free which a normal person would have.

 

·       Any agreement can only be stated as a valid agreement or contract when the consent of both the parties is free but in this case where one party is a minor and one is a major the consent of a minor can be easily dominated or overshadowed by the major.

 

·       Another factor that shall be taken into account is that a contract with a minor can lead to social harm and create social, economic and legal complications.

 

·       One of the points which came out of this judgement is that the parents of a minor cannot be held accountable for the doings of a minor if it is done without their consent or information, they can only be held liable when the minor is acting as an agent for the same which in this case was not the case and nor can a minor can be held liable for a contract which he entered as it is void ab initio.

 

Conclusion

The case of MohoriBibbee vs. DharmodasGhose, covers the entire scope of minors’ agreements. This case primarily concerns a contract involving a minor or a contract with a minor.

The plaintiff, Dharmodas Ghosh, mortgaged his property to the defendant, a moneylender when he was a minor. The defendant's attorney was aware of the plaintiff's age at the time. The plaintiff eventually paid just Rs 8000 but refused to pay the remaining amount. The plaintiff's mother was his next friend (legal guardian) at the time; therefore, he filed a lawsuit against the defendant, claiming that because he was a minor at the time of the contract's formation, he was not obligated by it.

 

In the judgment of the courts, anyone under the age of 18 or who has not reached the age of 18 (i.e., a minor) cannot intend to enter a contract or make major choices. This case has essentially taught us that, because minors are legally incapable of giving their consent, they must be entitled to or given protection in their relations with other adults. Following this instance, every attempt to contact or agree with the minor was invalid and void from the beginning. Such contracts are "void ab-initio”.

 

The following are the legal principles that were established in this case:

1. Any contract with a minor or an infant is neither valid nor voidable but is void from the beginning.

2.Section 64 of the Indian Contract Act, 1872 applies where the parties entering a contract are competent to do so, and therefore does not apply in circumstances where no contract is created at all.

3. A representative's legal acts or any knowledge of an agent's principle imply that such acts or knowledge are of his principle.

 

 

 

 

Post a Comment

0 Comments