Management and Organizational Studies 2275A/B Chapter 8: CHP 8 (Contracts Non-Enforcement)

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

Document Summary

The importance of enforcing contracts: without a contract the business would be unable to predict with any certainty which agreements would be binding, canadian legal system recognizes injustice of enforcing contracts without any provision for exceptional circumstances. Only if person now of legal age adopts agreement does it become enforceable. Exception is of a permanent or continuous nature agreement such as partnership. After reaching age of majority minor must reject obligation as if he/she fails to do so, liability will be imposed from time minor becomes of age. Infant act used in british columbia and provides even more protection than common law. Mental incapacity: freely and voluntarily formed contract involves that both parties be able to understand the nature and consequences of their agreement. Falls to more powerful party to prove no undue influence was present. He/she has explained proposed transaction to weaker party. Weaker party appears to understand proposed transaction.