AFM231 Chapter Notes - Chapter 8: Rescission, Undue Influence, Emor

• School: University of Waterloo
• Department: Accounting & Financial Management
• Course: AFM231
• Professor: Robert Timberg

Document Summary

Once reach an agreement and formed contract, law enforces to preserve the integrity, reliability, and predictability of contractual relationships. Prevent people from pulling out of deals. Remedy situations where an apparently valid contract fails to reflect the real agreement of both parties or is fundamentally unjust. Misrepresentation or important mistakes concerning the contract. Voidable contract: a contract that, in certain circumstances, an aggrieved party (doctrines above) can choose to keep in force or bring to an end. Void contract: a contract involving a defect so substantial that it is of no force or effect. Assumes people have legal capacity to form contracts. Importance of consent and voluntariness those disabled or children have special legal protection. Age of majority legally adult (18 or 19) Minors not obligated by contracts they make. Contracts usually voidable at the option of the minor alone.