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Legal Principle: A minor is not competent to enter into a contract and the law will assume that the contract never happened and everything is returned to as it was. Factual Situation: A, a minor, borrowed 50,000 from B by executing a mortgage of his property in favor of B. Subsequently, the minor sued for setting aside the mortgage. Issue: Do you think that the mortgage is valid? Can B recover the amount advanced to A? Decision:

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Legal Principle: A minor is not competent to enter into a contract and the law will assume that the contract never happened and everything is returned to as it was. Factual Situation: A, a minor, borrowed 50,000 from B by executing a mortgage of his property in favor of B. Subsequently, the minor sued for setting aside the mortgage. Issue: Do you think that the mortgage is valid? Can B recover the amount advanced to A? Decision:





 
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