Management and Organizational Studies 2275A/B Chapter Notes - Chapter 8: Harvard Step Test, Undue Influence, Equitable Remedy

• School: Western University
• Department: Management and Organizational Studies
• Course: Management and Organizational Studies 2275A/B
• Professor: Philip King

Document Summary

Once negotiations reach an agreement that appears to contain their consensus on the essential elements of a bargain, a contract is formed. Law focuses on enforcing that agreement so businesses can predict the certainty of agreements binding. This chapter presents a number of legal doctrines developed through common law and statute that are exceptions to the general rule that a contract, once formed, is enforceable. It categorizes these doctrines on the basis of there being: an unequal relationship between the two parties, misrepresentation or important mistakes concerning the contract, a defect within the contract itself. If aggrieved party can bring itself within one of the doctrines there are 2 outcomes: void or voidable. Voidable contract: contract that, in certain circumstances, an aggrieved party can choose to keep in force or bring to an end. Void contract: contract involving a defect so substantial that it is of no force or effect.