Management and Organizational Studies 2275A/B Chapter Notes - Chapter 8: False Statement, Unconscionability

• School: Western University
• Department: Management and Organizational Studies
• Course: Management and Organizational Studies 2275A/B
• Professor: Prof

Document Summary

Legal doctrines developed through common law and statue. Unequal relationship between the two parties: legal capacity: ability to make binding contracts. Minors: age of majority: when a person becomes an adult for legal purposes. Minors are not obligated to the contracts signed. Contracts are voidable at the option of the minor. When minors reach age of majority there is no impact on contracts formed while underage. Both parties must be able to understand the nature and consequences of the agreement. If someone was impaired while entering a contract and the other party had knowledge of it then the contact is voidable: duress. Economic duress: threat of economic harm that uses the will of the other party and results in a contract. The contract is voidable by the party under duress: under influence: unfair manipulation that compromises someone"s free will. Actual pressure: a transaction arises and one party has exerted unfair influence on the other.