Textbook Notes (368,245)
Canada (161,733)
Business (2,391)
BU231 (317)
Chapter 7

BU231 Textbook Notes Chapter 7.docx

4 Pages
100 Views
Unlock Document

Department
Business
Course
BU231
Professor
Shelley Mc Gill
Semester
Fall

Description
Chapter 7 The meaning of capacity to contract  Legal capacity = competence to bind oneself legally  Repudiate = reject or declare an intention not to be bound by Minors (or infants) Contractual liability of minors  Minor/ infant = a person who has not attained the age of majority according to the law of their province  General rule: contract made by a minor is not binding on them but binding on the other side (whether or not they were aware that they were dealing with a minor) o Except for necessaries = essential goods and services (like food) Necessaries and beneficial contracts of service  Not required to pay the contract price, but a reasonable price based  Bound by beneficial contracts of service = contracts of employment or apprenticeship found to be for a minor’s benefit Contracts creating no liability for a minor  A minor may always back out of a contract for non-necessaries Contracts indirectly affecting a minor  A minor who as benefited from a contract for non-necessaries will not be able to recover money already paid, though able to repudiate/ back out of their remaining liability  An adult can recover money lent to a minor only if the minor used the sum to purchase necessary goods The contractual liability of minors upon attaining majority  Voidable contracts = a contract that may be rendered non-binding at the option of one of the parties o Minor acquires “an interest of a permanent, continuous nature”  Ie. gym memberships, cell phone services  Must repudiate promptly upon reaching the age of majority or they will be liable just as if they had entered into the contract after coming of age  Minor loses the right to repudiate by not doing so promptly after coming of age or by accepting the benefits of the contract after that time o Second type does not create an interest of continuing nature and is not binding upon a minor unless she expressly ratifies and confirms the contract after attaining majority  Acknowledge and promise to perform Other persons of diminished contractual capacity  A person of unsound mind or incapacitated through alcohol or drugs are treated in the same way as minors o Bound to pay a reasonable price for necessaries  Must show that they were not only incapable of making a rational decision at the time of the agreement, but also that the other party was aware of his condition o But the person’s observations about the other party are unlikely to be reliable, so the necessary evidence must be adduced from all the surrounding evidences Corporations  Can make contracts or enter into any obligations that a natural person possess  But restricted to the limited power by the statutes creating them  Must make all its contracts through agents  it. Corporation officers or the signature of an authorized officer Labour unions, associations, and other organizations  Only after a group has applied to the appropriate govt agency and has been recognized as a separate legal person will it be capable of entering into contracts  Legal status of unions remains limited  Business management has the capacity to make an offer in the course of negotiating a collective agreement, but any acceptance of that offer by the union must be subsequently ratified by a majority of the union members before its binding  Representative action = an action brought by one or more persons on behalf of a group having the same interest o A union may authorize one or more persons to represent it in a court Enemy aliens  Alien = non-citizen  The 2 countries are at war  Any evidence that a contract made to an enemy alien is detrimental t
More Less

Related notes for BU231

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