BUSI 4000 Lecture Notes - Lecture 10: Uberrima Fides

• School: Memorial University
• Department: Business Administration
• Course: BUSI 4000
• Professor: Beth Mc Grath

Document Summary

Normally, the law is concerned with enforcing contracts, and it is difficult to back out once you have entered into a contract. Why: otherwise, the value of contracts would be lost. Exceptions to the general rule that a contract is enforceable. Sometimes, however, it is necessary for the court to intervene and allow a party to cancel or avoid a contract. Situations where a court might assist a party to cancel a contract. Where there is a relationship between the parties. Where one party has misrepresented an important fact. Where an important mistake has been made. Where there is a defect within the contract itself. Voidable contract: a contract that in certain circumstances an aggrieved party can choose to keep in force or bring to an end. Void contract: a contract involving a defect so substantial that it is of no force or effect. The law assumes that individuals and organizations have the legal capacity to form contracts.