§ 8.01-278.When plea of infancy not allowed; liability of infants for debts as traders; liability of infants on loans to defray expenses of education.
Chapter 7. Civil Actions; Commencement, Pleadings, and Motions · Article 2. Pleadings Generally · Last amended 1977 · Last verified July 16, 2026
In one sentenceSection 8.01-278 bars a minor operating undisclosed as a trader from raising infancy as a defense to creditors’ claims against the business property, and separately bars a minor who borrowed money in writing for approved higher-education expenses from pleading infancy to avoid repaying that education loan.
A.If any minor now transacting business or who may hereafter transact business as a trader fails to disclose (i) by a sign in letters easy to be read, kept conspicuously posted at the place wherein such business is transacted and (ii) also by a notice published for two weeks in a newspaper meeting the requirements of § 8.01-324, the fact that he is a
minor, all property, stock, and choses in action acquired or used in such business shall as to the creditors of any such person be liable for the debts of such person, and no plea of infancy shall be allowed.
B.If any minor shall procure a loan upon the representation in writing that the proceeds thereof are to be expended by such minor to defray any or all expenses incurred by reason of attendance at an institution of higher education, which has been approved by any regional accrediting association which is approved by the United States Office of Education, or by reason of attendance at any school eligible for the guarantee of the State Education Assistance Authority, such minor shall be liable for the repayment thereof as though he were an adult, and no plea of infancy shall be allowed.
Plain-English Summary
Section 8.01-278 carves two narrow exceptions into the general rule that a minor’s contracts are voidable for infancy. Subsection A targets minors who run a business without disclosing their age. If a minor trader fails both to post a conspicuous sign, in easily readable letters, at the place of business, and to publish a two-week newspaper notice under § 8.01-324 announcing that he is a minor, then all the property, stock, and choses in action used or acquired in that business become liable to creditors for the business’s debts, and no plea of infancy can block that liability.
Subsection B addresses education loans. A minor who procures a loan on a written representation that the proceeds will pay for expenses at an accredited institution of higher education, or a school eligible for State Education Assistance Authority guarantees, is liable to repay that loan as though an adult. Again, no plea of infancy is allowed as a defense to repayment.
Frequently Asked Questions
Can a minor running an undisclosed business avoid paying its debts by claiming infancy?
No, if the minor failed to post the required sign and publish the required newspaper notice disclosing minor status; in that case no plea of infancy is allowed against the business’s creditors.
What must a minor trader do to avoid this liability rule?
Post a conspicuous sign in easily readable letters at the place of business and publish a two-week newspaper notice under § 8.01-324 disclosing that he is a minor.
Can a minor avoid repaying an education loan by pleading infancy?
No, if the loan was procured on a written representation that the proceeds would defray expenses at an approved institution of higher education or an eligible school; the minor is liable for repayment as though an adult.
What property is exposed to creditors under subsection A?
All property, stock, and choses in action acquired or used in the undisclosed minor’s trading business.
Does § 8.01-278 eliminate the infancy defense generally?
No. It removes the defense only in the two specific situations described, undisclosed minor traders and written-representation education loans.
Amendment History
Code 1950, §§ 8-135, 8-135.1; 1960, c. 78; 1970, c. 7; 1977, c. 617.
Source & verification. Section text and amendment history are
reproduced verbatim from the Code of Virginia, published by the
Code of Virginia, Virginia Division of Legislative Automated Systems. Last verified July 16, 2026.
· Official source
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