BUS 393 Lecture Notes - Lecture 1: Contract, Undue Influence, Unconscionability

• School: Simon Fraser University
• Department: Business Administration
• Course: BUS 393
• Professor: ALL

Document Summary

Contracts: contract law applies to wherever the person receives it. Voluntary exchange of promises that is legally enforceable: tickets, business contracts, apartment rentals, vending machines. Legal and moral: exclusion clause: part of contract if certain conditions are met. Allow businesses to manage risk of liability. Powerful when people don(cid:284)t read contracts: breach, mistake, misrepresentation. Innocence, negligence and fraudulence are easy avenues to get out of a contract: duress and undue influence. Say some do not want to participate in the agreement. Undue influence: power influence from others pressures those to enter. Whether it(cid:284)s unfair/unethical to enforce the contract. A water company selling water for only a fraction of the market value (cid:283)you(cid:284)re getting good value for water(cid:284): good statement but you(cid:284)re being unconscionable: frustration. No goods to trade as part of the contract. Businesses can use exclusion clause: when they don(cid:284)t meet the criteria, know rules and strategy (options) Argument: exclusions clause is not fair: dispute resolution clause.