Management and Organizational Studies 2275A/B Chapter Notes - Chapter 9: Clean Hands, Limited Liability, Rescission

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

Document Summary

By agreement between parties: parties may enter into agreement that becomes unfavourable for one/both of them, may decide to, enter whole new contract. Novation: substitution of parties in a contract or the replacement of 1 contract w/ another. Enforceable by court is both parties benefit: vary terms of contract. Party benefitting from variation must provide consideration to other: end contract, substitute a party. Decide to terminate w/ both parties agreeing not to enforce rights. 1 party may pay the other to bring obligations to end. Law permits more limited form of novation whereby 1 party"s rights and obligations are transferred to someone else. New party substituted and old party drops out of contract. Everyone must agree to be effective: agreement between parties is almost always best way of dealing w/ events that make contract disadvantageous, able to avoid expense and uncertainty of litigation. If neither party"s performed, left where they were before contract formed.