Management and Organizational Studies 2275A/B Chapter Notes - Chapter 8: Resale Price Maintenance, Rescission, Uberrima Fides

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

Document Summary

It must prevent people from pulling out of deals because they have found better opportunities elsewhere or failed to conduct negotiations. In some cases, a contract involves a defect so substantial that the contact is considered never to have existed; therefore, there is no force or effect: this is known as a void contract. In order for a contract to be formed freely and voluntarily by both parties, both must be able to understand the nature and consequences of their agreement. Includes economic duress: the threat of economic harm that intimidates the other party and results in a contract, when duress is established, the contract is voidable at the option of the party who was subject to the duress. Undue influence: unfair manipulation that compromises someone"s free will or choice, traditionally operates in two circumstances (1) actual pressure, sometimes a transaction arises because one party has exerted unfair influence on the other.