Which of the following is listed as an exception to a minor's capacity to contract?

• A. Mortgage on the family home
• B. Minor's part-time job
• C. Minor's life insurance
• D. Car loan for a minor

Answer: (C)

The key idea is that minors generally lack the capacity to form binding contracts, but the law recognizes certain exceptions to protect their financial future and welfare. One well-established exception is life insurance. When a minor enters into a life insurance contract, courts treat the policy as enforceable despite the minor’s age because the contract serves a long‑term financial interest for the minor and their beneficiaries. Allowing a minor to disaffirm a life insurance policy could undermine the policy’s purpose and the security it provides, so such contracts are typically upheld.

The other scenarios don’t fit as exceptions. A mortgage on the family home involves encumbering property and is not treated as an available exception to a minor’s capacity. A minor’s part-time job falls under ordinary employment arrangements that minors can enter into in many jurisdictions, so it isn’t an exceptional carve‑out from the general rule. A car loan for a minor also isn’t an exception; loans to minors are generally not enforceable unless there’s a guardian or cosigner, and the minor’s ability to disaffirm remains a factor.