ADMS 2610 Lecture Notes - Lecture 8: Insurable Interest, Embezzlement, Indian Act
7 Jun 2018
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Chapter 9
Legal Capacity to Contract and the Requirement of Legality
1. First Nation Bands
a. A bands capacity is an inherent aspect of sovereignty
b. Not recognized as legal entities or persons under Indian Act, considered to be
unincorporated associations with a right to sue.
2. Labour Unions
a. Ability to enter into contracts (collective bargaining agreements) allowed
under labour legislation.
i. Normally would be unenforceable (restraint of trade)
3. Bankrupt Persons
a. Declared bankrupts have limited capacity to contract
b. Until receipt of discharge bankrupts can only enter into contracts for
necessaries. (can’t get out of student loans)
4. Requirement of Legality
a. Contracts that offend public good are unenforceable
b. Contracts whose purpose is/may be illegal, and are unenforceable
c. Some contracts are only rendered voidable by public policy/specific statutes
i. Voidable if the parties do not comply with statute/policy
5. Illegal Contracts
a. Agreement to commit a crime (Criminal stuff)
b. Embezzlement
i. When crime discovered a contract by employee of restitution, in return
for not reporting, is against public policy
6. Competition Act (aka Consumer Protection Law)
a. Restraint of competition
i. Unenforceable
ii. Act covers a number of business practices contrary to public policy
1. Eg. 2 companies or more agree to set a certain price, like
Loblaws on bread.
7. Administrative Acts
a. Agreement to avoid Workers Compensation, land use planning or wagering
laws are void and unenforceable.
8. Insurance Policies
a. Wagers (bets) are unenforceable contracts
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