Management and Organizational Studies 2275A/B Chapter Notes - Chapter 8: Equitable Remedy, Oral Contract, Undue Influence

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

Document Summary

The importance of enforcing contracts: exceptions (doctrines) to general rule that contract, once formed, is enforceable, unequal relationship between the 2 parties, misrepresentation/important mistakes concerning contract, defect within contract itself. Considered to have never existed at all. 2-step test must be satisfied for supplier to be able to enforce specific contract: Undue influence: undue influence: unfair manipulation that compromises someone"s free will, contract voidable at option of party who was victim, operates in 2 circumstances, actual pressure, presumed pressure. Relationship that already exists between parties may be bring on unfair manipulation. Falls to more powerful party to prove no undue influence: one way of proving that contract was freely chosen is to arrange for weaker party to get independent legal advice before entering into contract. Inequality may result b/c 1 party is unsophisticated, poorly education, lacks language facility, or has lower economic standing than stronger party: disparity between parties, on its own, is insufficient to upset contract.