BUS 393 Chapter 7: Chapter 7 – Formation of Contracts (Continued)

• School: Simon Fraser University
• Department: Business Administration
• Course: BUS 393
• Professor: Richard Yates

Document Summary

Minors/infants: minors (under 19) not bound by their contracts. => not bound if received no benefit at all. Parents" liability: parents are not responsible for minor"s contracts, responsible if they guarantee an obligation. Infants" liability for torts: minor may be liable for tort, independent of contract. Others of limited capacity: some crown corporations and government bodies, enemy aliens in times of war, foreign governments, foreign diplomats, bankrupts, indians. Contracts performed illegally: difference between contracts performed illegally and formed illegally. Lawful contracts performed may be enforced => courts use discretion. Illegal contract is void and will not be enforced: court will not restore parties to original position, unless one party is innocent, conduct that is immoral or against public policy also creates an illegal contract. Illegal contract may be partially enforceable, courts may sever just the illegal provisions. Involving immoral acts: to commit a crime, to commit a tort. 3: bets and wagers (eg. insurance with no insurable interest)