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What was the principal issue decided by the Privy Council in Mohori Bibee v. Dharmodas Ghose (1903)?

In Mohori Bibee v. Dharmodas Ghose, the Privy Council held that the mortgage executed by the minor was void because he lacked capacity to contract under the Indian Contract…

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What was the principal issue decided by the Privy Council in Mohori Bibee v. Dharmodas Ghose (1903)?

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Answer and explanation

Correct answer A

In Mohori Bibee v. Dharmodas Ghose, the Privy Council held that the mortgage executed by the minor was void because he lacked capacity to contract under the Indian Contract Act, 1872.

Option feedback

Option A

The decision concerns a minor’s capacity to contract and the validity of the mortgage he executed.

Option B

The decisive point was the mortgagor’s minority and incapacity under section 11.

Option C

The case resolved incapacity to contract. It did not turn on the sufficiency or absence of consideration.

Option D

The validity of a restraint-of-trade clause was outside the issue decided.

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