Victorian Consolidated Legislation

Supreme Court Act 1986 - SECT 51

Avoiding contract for payment of loan advanced during minority

51. Avoiding contract for payment of loan advanced during minority



(1) If a minor who has contracted a loan (a contract for the repayment of
which is void under this Division) agrees after full age to repay all or part
of that loan, that agreement and any instrument relating to it is, subject to
subsections (2) and (3), void against everyone.







(2) A person who-

   (a)  in good faith; and

   (b)  for value; and

   (c)  without notice-

is the holder or assignee of an instrument referred to in subsection (1) may
recover from the minor the amount secured by the instrument.

(3) If a person referred to in subsection (2) recovers from the minor the
amount secured by the instrument, the minor may recover that amount from the
person to whom the minor gave the instrument.

(4) For the purposes of this section any interest, commission or other payment
in respect of a loan is to be taken to be a part of the loan.

Division 4A-Administration of children's funds