The case involved a loan transaction between Dharmodas Ghose and a minor. Dharmodas Ghose lent 20,000 rupees to the minor at 12% interest and secured the loan through a mortgage executed by the minor. Later, the minor's mother claimed the mortgage was void due to the minor's lack of capacity to enter into a contract. The court held that the contract and mortgage executed by the minor was void since minors do not have the capacity to enter into contracts under Indian law. As the contract was void, the minor could not be compelled to repay the loan amount. The law of estoppel also did not apply due to the minor's legal protection under contract law.

1. Case
Mohori
Bibee Vs.
Dharmodas
Ghose
BY:
M.V.KARTHIK
Gitam School Of
International
Business

2. INTRODUCTION OF THE CASE:
Appellant(Plaintiff) : Mohori Bibee
Advocate for Appellant : Watkins
Respondent (Defendant): Dharmodas
Ghose
Advocate for Respondent : W.W. Box
Judge : Lord Macnaghten; Lord Davey;
Lord Lindley; Sir Ford North; Sir
Andrew Scoble; Sir Andrew Wilson, JJ.
Court : Kolkata
Reported in : (1903)30IndianAppeals114
Decided On : Mar-04-1903
Acts : Indian Evidence Act, 1877 - Section

3. CASE:
• The Dharmodas Ghose lent the
MINOR the sum of 20,000 rupees at
12% interest and secured the loan by
way of mortgage executed by the
MINOR in favour of the Dharmodas
Ghose.
• Later the mother of the children claim
that the mortgage was void for lack
of capacity.

4. Capacity to Contract
Essentials of a Valid Contract
• Section 10: The parties involved
in the contract should be
competent
to
make
the
contract.
• Section 11: Every person is
competent to contract who is of
age of majority according to the

5. Disqualifications to compete for a contract
• A person who has not attained the
age of majority according to the law.
• A person who is of unsound mind.
• A person who has been disqualified
from contracting by some law.
 The position of a minor

6. • The council held the contract by the
minor as void
• The minor has no capacity to contract
hence the mortgage was not valid
• He cannot be compelled to repay the
amount advanced to him.
• As he is not bound by the promise made
by him under the contract.

7. Law of estoppel
• A legal tool used when someone contra
• Low of estoppel is not applicable to min
• The purpose of the policy is to protect