Management and Organizational Studies 2275A/B Chapter Notes - Chapter 8: Perjury, Uberrima Fides, Unconscionability
10 Oct 2012
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Voidable: 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 it is of no force or effect. Legal capacity: the ability to make binding contracts. Age of majority: the age at which a person becomes an adult for legal purposes. General rule, minors are not obligated by the contracts they make. Both parties must be able to understand the nature and consequences of their agreement. Contracts that are made as a result of one of the parties being threatened with physical harm are obviously not enforceable. Economic duress: the threat of economic harm that coerces the will of the other party and results in a contract. Undue influence: unfair manipulation that compromises someone"s free will. Example: an elderly person pressured in to signing over an estate in return for care.
