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Capacity - minors

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Supreme Court Act 1986 (Vic)


Section 49

The Supreme Court Act (s 49) makes certain contracts with minors void:

  • Contracts for the repayment of money lent or to be lent
  • Contracts for payment for goods supplied or to be supplied (other than necessities)
  • Accounts stated

In addition, protection is given to minors who purport to ratify after becoming an adult.  In particular, section 50 effectively provides that a minor cannot ratify a contract made during minority (an entirely new contract would need to be entered into).  Section 51 further provides that a minor who contracts alone cannot (in most cases) effectively agree (after obtaining full age) to repay all or part of that loan – any such agreement is void.

Extract forthcoming