Principle A contract between the father and his son is a contract of utmost good faith In such a typ...........

Indian Contract Act (ICA)1872 Others

Principle: A contract between the father and his son is a contract of utmost good faith. In such a

type of contract law presumes that at the time of entering into the contract the father was in a position to dominate the will of his son. Where one of the parties was in position to dominate the will of the other party, the contract is enforceable only at the option of the party whose will was so dominated.

Facts: Ram had advanced a sum of Rs. 10,000/- to his minor son Shyam. When Shyam became major, his father Ram misused his parental position and entered into an agreement with Shyam and obtained a bond from him for a sum of Rs. 30,000 in respect of the advance. Whether this agreement is enforceable?

The agreement is enforceable against Shyam only for Rs. 10,000/-, the actual amount of money advanced to him

The agreement is enforceable against Shyam for Rs. 30,000/- because he has signed the bond

The agreement is enforceable against Shyam because he was major at the time of agreement.

The agreement is not enforceable against Shyam because Ram has misused his position as father to obtain an unfair advantage.

Explanation:

The father has misused his position as a father to obtain a bond of Rs. 30,000 from his son Shyam. And as per the principle, such an agreement is not enforceable. The principle does not speak of age but that of father-son relationship. In this case the facts clearly state the father misused his position. Shyam’s will was dominated giving him power to get the contract enforced.