Management and Organizational Studies 2275A/B Chapter Notes - Chapter 8: Harvard Step Test, Rescission, Uberrima Fides

• School: Western University
• Department: Management and Organizational Studies
• Course: Management and Organizational Studies 2275A/B
• Professor: Philip King

Document Summary

There is a general rule that a contract, once formed, is enforceable. There are legal doctrines on the basis of there being: an unequal relationship between the two parties, misrepresentation or important mistakes concerning the contract, a defect within the contract itself. If one of these doctrines are in place, there are two possible outcomes: elect whether to keep the contract in force or have it brought to an end (see next definition) Voidable contract: a contract that, in certain circumstances, an aggrieved party can choose to keep in force or bring to an end. Void contract: a contract involving a defect so substantial that it is of no force or effect. Legal capacity: the ability to make binding contracts: contract law emphasizes the important of consent and voluntariness, children and those with mental incapacities are given the benefit of special legal protection from contracts. Necessaries and are required to pay a reasonable price for them.