ACTG 2P40 Lecture Notes - Lecture 5: Insurance Fraud
15 Oct 2013
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Document Summary
Formation of contracts: legality (chapter 7: illegality with respect to contracts: contracts void or illegal by statute. Void contract is one that the court will not uphold. The court tries to put the parties back to the position they were in before the contract was entered into. Void ab initio: when there is a contract, it never existed in the first place. The contract happens to break the law as it"s being performed. Example 1- battison v. mauty battison & sons is a construction company (home renovations), Mauty is a guy who wants renovations done to his house. Anytime a construction company enters a contract with a home owner, they have to use a certain type of contract battison does the work, it comes to pay the bill, mauty says i"m not paying. Battison says why not, mauty says this contract is illegal. City of toronto says you have to use this form.
