ADMN 3250H Chapter Notes - Chapter 10, 11 & 12: Rescission, Undue Influence, Punitive Damages
30 Jun 2018
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Chapter 10, 11, & 12
What factors are taken into consideration in determining whether a
restrictive covenant limiting competition in the purchase and sale of a
business or an employment contract will be upheld?
What is the common law rule with respect to the requirement of writing for a
contract?
All formal contracts are evidenced by writing, and most are subject to the
requirement that they be signed, sealed, and delivered before they become
operative
What contracts are required to be in writing according to Statute of Frauds
and the Sale of Goods Act?
Statute of Frauds
Land contracts
Long-term contracts
Wills
The like
Sale of Goods Act
Varied the value of goods which a written record of the transaction (receipt)
is required
In most provinces, this amount is either $40 or $50
Legislation provided a number of activities, which included the payment of a
deposit, acceptance of delivery of party of the goods, or the giving of
“something in earnest” to bind the bargain
If contract of sale is not in writing, it does not pose a hazard for most buyers
and sellers
Consumer-protection legislation applicable to many kinds of contracts
Legislation also imposes penalties for failure to provide consumers with a
written purchase agreement, disclosing information concerning the sale and
any credit terms
When a contract has to be in writing, what is it specifically that has to be in
writing?
Parties to the agreement must be identified either by name or description,
and the terms of the agreement must be set out in sufficient detail that the
contract may be enforced
The written memorandum should be signed by the party to be charged
Parol evidence rule, condition precedent, doctrine of implied term, collateral
agreement, and subsequent agreement
What is the parol evidence rule?
find more resources at oneclass.com
find more resources at oneclass.com
Parol evidence rule – a rule that prevents a party from introducing
evidence that would add to or contradict terms of a contract
Evidence may only be admitted to rectify or explain the terms agreed upon,
or to prove some fact such as fraud or illegality that may affect the
enforceability of the agreement
What is undue influence and duress and their effect on a contract?
Undue influence – a state of affairs whereby a person is so influenced by
another that the person’s judgment is not his or her own
oA contract obtained under these circumstances would be voidable, if
the dominated party acts to avoid the contract as soon as he or she is
free of the dominating influence
oUndue influence must be established before the courts will allow a
contracting party to avoid the agreement
Duress – the threat of injury or imprisonment for the purpose of requiring
another to enter into a contract or carry out some act
oIf the threat of violence is made to the person, contract may be
avoided
What are the different types of contractual misrepresentation and their effect
on a contract?
Innocent misrepresentation – a false statement of a material fact made by a party
that honestly believed the fact to be true
Contract can be treated as voidable and bring an action for rescission
Courts will normally make every effort to put the parties back in the same
position they were in before the contract was made
Fraudulent misrepresentation – a false statement of fact made by a person who
knows, or should know, that it is false, and made with the intention of deceiving
another
Innocent party must prove fraud on the part of the party making the false
statement
Rescission is limited to those cases where the courts may restore the parties
to the position they were in before entering into the contract
If innocent party is able to prove fraud on the part of the party making the
statement, then the courts may award punitive damages against the party
committing the tort as punishment for the act
Misrepresentation by Non-Disclosure
Law imposes a duty of disclosure in certain circumstances where one party
to the contract possesses information that, if undisclosed, might materially
affect the position of the other party to the agreement
Ex. Contracts of insurance, partnership, and those where a relationship of
special trust or confidence exists between the contracting parties
find more resources at oneclass.com
find more resources at oneclass.com
Document Summary
All formal contracts are evidenced by writing, and most are subject to the requirement that they be signed, sealed, and delivered before they become operative. Varied the value of goods which a written record of the transaction (receipt) is required. In most provinces, this amount is either or . Legislation provided a number of activities, which included the payment of a deposit, acceptance of delivery of party of the goods, or the giving of. If contract of sale is not in writing, it does not pose a hazard for most buyers and sellers. Consumer-protection legislation applicable to many kinds of contracts. Legislation also imposes penalties for failure to provide consumers with a written purchase agreement, disclosing information concerning the sale and any credit terms. Parties to the agreement must be identified either by name or description, and the terms of the agreement must be set out in sufficient detail that the contract may be enforced.
