Question

A minor aged 17 years obtains a loan of ₹6 lakh from a bank by misrepresenting his age and executes loan documents. The bank later discovers the truth. Under the Indian Contract Act 1872, the loan agreement is:

A Valid and enforceable against the minor, since the bank advanced the money in good faith and the misrepresentation estops the minor.
B Voidable at the option of the bank, which may elect to avoid or to affirm the agreement after discovering the minor's true age.
C Void ab initio, and the bank cannot enforce the agreement against the minor or recover the amount lent from him personally.
D Voidable at the option of the minor, who may repudiate the loan agreement on attaining majority within the prescribed period.
E Fully valid, provided the minor has attained the age of majority by the date on which the suit for recovery is filed.
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