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Daniel J Fife

1READING NOTESChapter 7 Capacity to ContractLegality of ObjectComplete discussion of essential elements with two elements assumed to be present unless shown otherwise First being capacity to contract and second being the way our legal system makes certain contracts unenforceableNote on Void vs VoidableVoidableRefers to a contract that exists until set aside by the courts VoidIn contrast to voidable a void contract is treated as if it never existed If this happens the court will grant the remedy of recission placing the parties back to their original positionsMeaning of Capacity to ContractLegal capacity to contract refers to the competence of someone to bind themselves to legally binding contractsAlthough the requirements of oaci may be satisfied as a matter of policy the law may excuse a party from their obligations if they are found not to have the capacity to contractBurden of proof is on the party alleging a lack of capacityGroups to ConsiderMinorsoA minor is a person who has not of age of majority in their province 18 in OntariooWorks in a onesided manner where a contract is not binding for the minor while still binding for the nonminoroBut following these above conditions minors could disregard contracts with impunity and consequently no one would ever contract with that is why there are exceptionsExceptionsA minor is bound to pay for all necessaries essential goods and services like food or clothingoMinors may always repudiate a contract for nonnecessaries even if those necessaries are beneficial must return them thoughoWhen a minor is living at home and supported by his parents his purchases are less likely to be considered as necessariesoAlso minors are not liable for necessaries that are ordered but not yet receivedMinors are also bound by beneficial contracts of service ie employment or apprenticeship when they are found not to be exploitative oFreedom from liability only applies to contracts still very liable for torts unless they occurred as a result of a contractoWhat happens when they become age of majorityIn contracts of a continuous nature a minor must repudiate the contract upon turning 18 if they want to call it quitsSilence means the contract stands
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