AFM231 Chapter Notes - Chapter 8: Equitable Remedy

• School: University of Waterloo
• Department: Accounting & Financial Management
• Course: AFM231
• Professor: Sally Gunz

Document Summary

Principle of vicarious liability: employer is responsible for actions of its employees when the employment is on normal course of employment. Void: it is as if the contract never existed. Very little we look at today falls into this category. Voidable: the contract continues unless the victim" asks for it not to. In both cases, there are two critical steps: 1. that is, what happened while you were creating the contract that. 2. so you are only allowed it when it would be appropriate (fair) to do so. This law is governed by law of equity. If you want to avoid a contract and declare o o o if you can. Be eligible (have a legitimate ground for doing so) Act as soon as you become aware of the problem Be able to return the subject matter of the contract in its original condition. Contracts with vulnerable people: minors, mentally ill/ incapacitated by drugs/alcohol.