A minor, 15 years old, and two sisters co-sign a loan of 12,000; At maturity, the minor's liability is which?

• A. Is liable to pay only the amount which benefits her.
• B. Is liable to pay the amount of P60,000.
• C. Is liable to pay the amount of P30,000.
• D. Is liable to pay her the whole amount of P120,000.

Answer: (A)

The key idea is how a minor’s liability works when they co-sign a loan. A contract involving a minor is voidable, and a minor cannot be forced to pay for a loan unless the loan benefits the minor. When a minor joins as a co-signer with adults, the minor’s obligation is limited to the amount that actually benefits her from the transaction. The part of the loan that benefits the other signers or goes toward purposes not benefiting the minor isn’t her liability.

So, in this case, the minor would be responsible only for the portion of the 12,000 that actually benefits her. The rest would be covered by the other co-signers. That’s why the correct interpretation is that the minor’s liability is the amount that benefits her.