A contract made by a minor is generally voidable, with exceptions for

• A. Necessaries only
• B. Bank loans only
• C. Necessaries and bank loans
• D. No exceptions; all minor contracts are voidable

Answer: (C)

A minor’s contracts are generally voidable because a minor lacks full capacity to bind themselves, but the law creates select exceptions where enforcement is allowed. One well-established exception is for necessaries—goods and services essential to the minor’s health, maintenance, and subsistence (think food, clothing, shelter, medical care, and similar essentials). The minor can disaffirm the contract, but they must pay the reasonable value of what was actually furnished, so providers aren’t left uncompensated while still protecting the minor from overreaching obligations.

The other recognized exception involves bank loans. Banks and other lenders are treated as holding a special place in ordinary business, so a loan extended to a minor in the course of banking operations can be enforceable to the extent of the funds actually loaned. This prevents lenders from being unable to recover for credit extended in reliance on the transaction, while still allowing the minor the option to disaffirm other non-necessary contracts. Together, these two are the exceptions that let certain minor contracts stand, which is why the best answer includes both necessaries and bank loans.