Principle: A contract entered into by a minor is void ab initio. Facts: M, aged 16, takes a loan from L by signing a promissory note. Two years later, after attaining majority, M ratifies the loan and promises to repay. Which is MOST accurate?
AThe original loan is valid because M ratified it
BThe original loan is void; ratification on majority cannot revive it (a fresh contract with fresh consideration would be required)
CM is liable in tort only
DL can recover only half the loan
Answer & Solution
Correct answer: B. The original loan is void; ratification on majority cannot revive it (a fresh contract with fresh consideration would be required)
Mohori Bibee v Dharmodas Ghose (1903): a minor's contract is void ab initio and cannot be ratified after majority. A fresh agreement supported by fresh consideration is required to create new liability.
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