Mohori Bibee v Dharmodas Ghose (1903)

Contract I · Minor’s Agreement

Facts.

Dharmodas, a minor, mortgaged his property to a moneylender and received part of the loan. The moneylender’s agent knew he was a minor. When sued, the minor pleaded minority; the lender sought repayment and to enforce the mortgage.

Issue.

Is a minor’s agreement void or merely voidable, and can the minor be made to repay the money advanced?

Held.

The Privy Council held a minor’s agreement is void ab initio. The mortgage was therefore a nullity; the minor could not be compelled to repay, and there was no estoppel against him despite the lender’s reliance.

Why it matters.

It is the foundational authority on minors’ contracts in India — the source of “void ab initio”, no ratification and no estoppel — and the model answer to every minor problem.

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