Textbook Notes (369,204)
Canada (162,462)
LAW 122 (625)
Chapter 10

Chapter #10.docx

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Department
Law and Business
Course Code
LAW 122
Professor
Avi Weisman

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Chapter 10 Contractual DefectsSix different contractual defects and their legal consequences Incapacity absence of writingmistake frustration illegality and unfairness during bargaining 1 Incapacity to Contracty Capacity is the legal power to give consent y Sometimes the question of capacity depends on a persons ability to understand the nature and consequences of their acts y We will consider 7 groups of person who may have no capacity or only limiyed capacity to create a contract 1 Minors 2 Mentally disable persons 3 intoxicated persons 4 corporations 5 associations 6 Indian bands and aboriginal persons 7 public authoritiesPERSONAL CAPACITY 1 MinorsAge of Majority is the age at which a person is held fully accountable in lawMinor people who have not reached the age of majorityLaw says that everyone under that age of majority lacks capacityOntario Alberta Saskatchewanage of majority is 18 years Some contracts are voidable at the minors optionVoidable a contract is voidable if a minor is entitled to avoid the legal obligations that it createdIf a contract is voidable a minor may elect to avoid liabilityMinors cannot avoid contracts of employment that are to their benefit 2 Mental IncapacityA court has declared a person to lack mental capacitythere contracts are void and cannot be enforced at all nd 2 even if there is no court declaration a person may still be considered mentally incompetentA minors contract is voidable even if the other party was unaware of the age issueIn contracts the contract of a person with a mental incapacity is voidable only if the other party should have recognized the problem 3 IntoxicationThat agreement is voidable if tow conditions are met o The person must have been so drunk that they could not know or appreciate what they were doing o The other contractual party must have been alerted to that fact 4 Business CorporationsCorporations are treated as legal personsCharted corporations are treated the same way as individuals who have reached the age of majority
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