Ark. Code Ann. § 9-26-101 (2026)
Rescission of sale, contract, etc., by minor — Restitution
- In the case of a sale, contract to sell, conditional sale contract, or other contract to which an infant eighteen (18) years of age or older is a party, the sale, contract to sell, conditional sale contract, or other contract cannot be rescinded by the infant unless and until the infant makes full restitution to the other party to the sale, contract to sell, conditional sale contract, or other contract of the property and money received by the infant from the other parties.
- Full restitution of property means that the property must be returned in substantially the same condition as received. If this cannot be done, there must be returned the property plus a sum of money that equals the difference between the fair market value of the property at the time the sale, contract to sell, conditional sale contract, or other contract was made and its fair market value at the time of the rescission, or, if the property is no longer in the possession of the infant, there must be returned a sum of money equal to its fair market value at the time the sale, contract to sell, conditional sale contract, or other contract was made.
History. Acts 1953, No. 337, § 1; A.S.A. 1947, § 68-1601.
Publisher's Notes. This section may be affected by § 9-25-101. Acts 1975, No. 892, § 1 amended that section to change the age of majority from 21 years of age to 18 years of age.
Case Notes
Note. The following cases were decided prior to the 1975 amendment to § 9-25-101.
Applicability.
The requirement that a minor 18 years old at the time of a purchase cannot rescind the contract of purchase without reimbursing the seller for loss due to rescission does not apply to a contract made by a minor under 18. Robertson v. King, 225 Ark. 276, 280 S.W.2d 402 (1955).
Market Value.
Market value may be determined without restitution having been made in kind. Security Bank v. McEntire, 227 Ark. 667, 300 S.W.2d 588 (1957).
Car's market value at a given prior date can be proved without regard to who happens to have possession of the vehicle at the time of the hearing. Security Bank v. McEntire, 227 Ark. 667, 300 S.W.2d 588 (1957).
Minor's testimony as to value of his own property was competent as was that of his father, who had owned more than a dozen automobiles. Security Bank v. McEntire, 227 Ark. 667, 300 S.W.2d 588 (1957).
Restitution.
Evidence showed there was a single transaction, which the minor was entitled to avoid by giving back the only thing he received. Security Bank v. McEntire, 227 Ark. 667, 300 S.W.2d 588 (1957).
Minor was properly allowed 30 days in which to return an automobile, which was being held in another state for nonpayment of a repair bill. Security Bank v. McEntire, 227 Ark. 667, 300 S.W.2d 588 (1957).
Where maker of note was 19, he could be sued for deficiency after sale of repossessed automobile which had been purchased with note, since minors over 18 may rescind contract only if they make full restitution, including a sum of money equal to the difference between market value at time of sale and time of rescission. Wheeless v. Eudora Bank, 256 Ark. 644, 509 S.W.2d 532 (1974).