LAW 122 Lecture Notes - Transact, Undue Influence, Fiduciary
27 Nov 2012
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Contractual defects: they provide one of the parties with a defence when the other commences a lawsuit. There are five different contractual defects: incapacity to contract, absence of writing, mistake, unfairness during bargaining, illegality, incapacity to contract. A person cannot enter into contract unless they have legal power to give consent (ex. A 10 year old may not be bound by contract) The line drawn here is capacity; if a person has capacity then they have the legal power to give consent. People who may or may not have capacity include: minors, mental capacity, intoxication, business corporations, associations, minors. Age varies between jurisdictions (either 18 or 19) Age of majority: the age at which the person is held fully accountable in law. Minors contracts can either be voidable or enforceable. Rule applies even if the child seems older. Some contracts that minors cannot avoid and therefore are enforceable. Minor has option to accept or avoid contract.
