Chapter 7 - Business Law 2275

4 Pages
119 Views
Unlock Document

Department
Management and Organizational Studies
Course
Management and Organizational Studies 2275A/B
Professor
Cristin Keller
Semester
Fall

Description
Chapter 7Formation of Contracts ContinuedConsensus consideration capacity legality intentionCapacitySeveral categories of people identified as needing protection protected by having their freedom to enter into contracts limited or in some cases eliminated completelyMinorsInfantsAge of majority depends on province 18 or 19General principle is that persons under the age of majority called infants or minors are not bound by their agreements but the adults with whom they contract are bound and the minor can choose not to be bound by itImportant to distinguish between the actual incapacity of a child who is incapable of understanding what is happening and the artificial incapacity imposed on a youth who is a functioning member of societyMost problems relating to minors and contracts they have entered into arise in situations involving young people who are approaching the age of majorityTest for capacity is objectiveDoes not matter if the adult was under the impression that the other person was an adult or even that that person clearly understood the terms of the contractOnly question is whether the other person was under the statutory age of majority at the time the contract was createdCannot be forced to paygo through with contract even if the subject of the contract is destroyed they must either return it if they dont pay or not go through with the deal at allLegislation supplements common law BC has Infants Act enforces the general principleMinors Property Actallows a court to confirm a contract entered into by a minor if it believes it is in the best interests of the child to do soProblems arise with contracts made online law with respect to capacity will be determined by the jurisdiction where the contract is created which is sometimes not clearAlso no way for online merchants to know the personal characteristics of the parties with whom they are dealing so it is important that such merchants include appropriate restrictions and disclaimers in their online contractsNecessaries and beneficial contracts of service o Minors are bound by contracts for the acquisition of necessaries ex food clothing and lodging and for contracts of service that benefit the minor o Minor is married or living on their own what constitutes as a necessary will be broader ex medical dental legal services toiletries and a house o Car is unlikely to be a necessary because of alternative forms of transportation o If contract is determined to be a necessary it does not guarantee that the merchant will get paid full price the minor is obligated only to pay a reasonable price o If a minor borrows money to buy necessaries there is an obligation to repay the debt only if the funds advanced are actually used for necessaries o Government student loans are exceptions supported by legislation requiring repayment regardless of what the money is used for and regardless of the age of the borrower o Contracts of employment apprenticeship or service are binding if it can be demonstrated that taken as a whole the contract is for the benefit of the minor o In BC all contracts are unenforceable against an infant except student loan agreementsOn becoming an adult o Minor can ratify contract at age of majority and the right to avoid the contract would no longer be valid if it is ratified makes a voidable contract binding
More Less

Related notes for Management and Organizational Studies 2275A/B

Log In


OR

Join OneClass

Access over 10 million pages of study
documents for 1.3 million courses.

Sign up

Join to view


OR

By registering, I agree to the Terms and Privacy Policies
Already have an account?
Just a few more details

So we can recommend you notes for your school.

Reset Password

Please enter below the email address you registered with and we will send you a link to reset your password.

Add your courses

Get notes from the top students in your class.


Submit