The CA Hub

CAF-4 · Chapter 3 · Question 6 of 15

Saad, a minor, borrows Rs. 50,000 from Fahad by falsely representing that he is 20 years old. Fahad sues for the money. What is the most likely outcome?

Test yourself: pick an answer

Reveal answer & explanation

Correct answer: C) The contract is void, and Saad cannot be forced to repay the loan.

Explanation

Even if a minor misrepresents their age, the contract remains void. The rule of estoppel (preventing someone from denying a previous statement) does not apply to a minor in this context.

All 15 questions in Chapter 3Capacity of parties MCQs with answers

More Capacity of parties MCQs

Sponsored slot availableRun a CA academy or hiring firm? Put your name in front of students preparing for this exam.Advertise →